Daily Current Affairs - 4 July 2025

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Today's edition features key updates including WHO's  “3 by 35” initiative, Chemical Industry in India, rise of the Global South, OPCW, 23rd Regional Meeting of National Authorities of States Parties in Asia,  Chhattisgarh withdrawn directive on CFRR, DAC, IOC, Kariyachalli Island, Blue Nile, Global Peace Index (GPI), polar anticyclone , Surveillance Pricing and more...

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WHO launches "3 by 35" initiative to raise prices of tobacco, alcohol and sugary drinks

1. The World Health Organization (WHO) has launched the “3 by 35” initiative, aiming to increase the prices of tobacco, alcohol, and sugary drinks by at least 50% through health taxes over the next 10 years.

2. This initiative is projected to mobilize an additional US$ 1 trillion in public revenue globally over the coming decade, offering a powerful fiscal and health strategy.

3. Functioning as a collaborative alliance, the initiative brings together development partners, civil society, academic institutions, and national governments to coordinate policy and implementation efforts.

4. At the core of this approach is the concept of a Health Tax, which is a targeted tax levied on products with harmful public health impacts, such as tobacco, alcohol, and sugary beverages.

5. According to WHO, such taxation is among the most cost-effective tools to combat non-communicable diseases (NCDs)—chronic conditions like diabetes, cancer, and heart disease.

6. The need for health taxes arises from the severe public health burden these products create, with NCDs now accounting for over 75% of global deaths.

7. Economically, these products also cause negative externalities—costs imposed on society (e.g., healthcare expenses)—and internalities, which are hidden long-term costs to consumers (e.g., chronic illness).

8. For instance, tobacco use alone cost the global economy US$ 1.4 trillion in 2012, through healthcare expenses and productivity losses.

9. On the revenue front, WHO estimates that a 50% health tax could generate up to US$ 3.7 trillion in new revenue globally within five years, averaging US$ 740 billion per year—roughly 0.75% of global GDP.

10. Importantly, such taxation can promote equity, as low-income populations—who are disproportionately affected by NCDs—stand to benefit most from reduced exposure and improved health outcomes.

11. In India, several steps have been taken to curb consumption of unhealthy products, including a 28% GST plus 12% compensation cess on aerated beverages.

12. High-fat, sugar, and salt (HFSS) foods in India are taxed at 12% GST, reflecting their contribution to lifestyle-related diseases.

13. Additionally, the Food Safety and Standards Authority of India (FSSAI) has capped trans fatty acids (TFA) in food products at 2% of total oil and fat mass, promoting safer food options.

14. Global case studies reinforce the effectiveness of health taxes—Colombia (2016) saw a 34% drop in cigarette consumption after increasing cigarette taxes.

15. Similarly, Saudi Arabia’s 50% tax on sugar-sweetened beverages (SSBs) led to a 19% reduction in SSB consumption within just one year.

16. Overall, the “3 by 35” initiative underscores how strategic health taxation can drive better health outcomes, economic benefits, and fiscal strength, especially for countries in both the Global North and South.

Strengthening Chemical Industry in India

1. NITI Aayog recently released a report titled ‘Chemical Industry: Powering India’s Participation in Global Value Chains’, offering an in-depth analysis of the country’s chemical sector and its global potential.

2. The report emphasizes that with the right mix of fiscal and non-fiscal interventions, India can grow its chemical sector to USD 1 trillion and achieve a 12% share in Global Value Chains (GVCs) by 2040.

3. Currently, India holds a 3.5% share in global chemical value chains, despite being the 6th largest chemical producer in the world—indicating untapped potential.

4. However, the sector faces significant challenges, starting with a heavy reliance on imported feedstock, which led to a USD 31 billion trade deficit in 2023, due to limited domestic backward integration—i.e., India imports raw materials it could ideally produce domestically.

5. Another key issue is low investment in Research and Development (R&D)—India invests just 0.7% of total investment in R&D compared to the global average of 2.3%, which limits innovation in high-value chemicals.

6. The sector also suffers from a 30% shortfall in skilled professionals, highlighting a serious skill gap that affects productivity and competitiveness.

7. Additional structural challenges include infrastructure bottlenecks, logistics inefficiencies, and a complex regulatory environment, all of which slow down industrial growth and investor confidence.

8. To address these issues, the report suggests targeted government support, such as Viability Gap Funding (VGF)—a financial mechanism where the government partially funds projects that are economically justified but not financially viable on their own.

9. It also recommends establishing world-class chemical hubs in India and introducing operational expenditure (opex) subsidies for chemicals that are import-dependent, have high export potential, or are critical to end-user industries.

10. Additional reforms include fast-tracking environmental clearances to cut delays and securing Free Trade Agreements (FTAs) to enhance global market access and supply chain integration.

11. Together, these measures aim to transform India into a global chemical manufacturing and export powerhouse, fully integrated into global value chains.

Rise of Global South shaping new World Order: India

1. Indian Prime Minister recently emphasized that the World Order established after World War II (WWII) is rapidly changing, driven largely by the rise of the Global South.

2. After WWII, global power dynamics became bipolar, dominated by the two superpowers: the United States of America (USA) and the Union of Soviet Socialist Republics (USSR), also known as the Soviet Union.

3. Following the dissolution of the Soviet Union in 1991, the United States emerged as the sole superpower, marking the start of a unipolar world order dominated by one country.

4. The term Global South refers to countries that are technically and socially less developed, primarily located in the Southern Hemisphere, including regions in Africa, Asia, and Latin America.

5. The Brandt Report first proposed dividing countries into North and South based on parameters like technological advancement and Gross Domestic Product (GDP), highlighting global disparities.

6. The rise of the Global South is reshaping the World Order through its growing economic strength, with these countries accounting for 40% of global trade, according to the United Nations Conference on Trade and Development (UNCTAD).

7. Rapid economic growth in nations like China and India has significantly altered global economic dynamics, challenging traditional power structures.

8. The Global South is also strengthening alternative institutions such as the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA), providing financial frameworks independent of Western-dominated systems.

9. Assertive diplomacy is another key feature, exemplified by the establishment of the Loss and Damage Fund at COP27, which aims to support vulnerable countries affected by climate change.

   

   Brandt line

10. Countries from the Global South are actively pushing for reforms in the United Nations and other international bodies, including the coalition of developing nations known as the Group of 77 (G77).

11. Demographically, the Global South accounts for the majority of the world’s population, with many countries benefiting from a demographic dividend—a period where the working-age population is larger than the non-working-age share, offering economic growth potential.

12. Additional factors like vibrant South–South Cooperation—collaborative partnerships among developing countries—further strengthen the collective influence of the Global South on the global stage.

OPCW convened the 23rd Regional Meeting of National Authorities of States Parties in Asia in New Delhi

1. The Organisation for the Prohibition of Chemical Weapons (OPCW) recently convened the 23rd Regional Meeting of National Authorities of States Parties in Asia in New Delhi, in collaboration with India’s National Authority Chemical Weapons Convention (NACWC).

2. This regional meeting forms part of OPCW’s ongoing efforts to support the effective implementation of the Chemical Weapons Convention (CWC), a global treaty aimed at eliminating chemical weapons.

3. The OPCW serves as the implementing agency of the CWC, overseeing compliance and facilitating cooperation among member states.

4. The Chemical Weapons Convention (CWC) was first drafted and adopted in 1992 at the Conference on Disarmament, and it officially came into force in 1997.

5. The CWC is the world’s first multilateral disarmament agreement designed to eliminate an entire category of Weapons of Mass Destruction (WMDs) within a specified time frame.

6. As of now, the CWC has 193 States Parties, with India being an original signatory, demonstrating its commitment to chemical weapons disarmament.

7. The OPCW was awarded the Nobel Peace Prize in 2013 in recognition of its work to promote global peace and security by eliminating chemical weapons.

8. In India, the NACWC, established under the Chemical Weapons Convention Act, 2000, is responsible for implementing the Convention domestically.

9. In 2024, the Indian Chemical Council (ICC) received the prestigious OPCW-The Hague Award, becoming the first chemical industry body worldwide to earn this honour.

10. This award recognized the ICC’s significant contributions toward advancing the Convention’s goals and enhancing industry-wide safety and security practices in India.

11. The ICC, being India’s oldest chemical industry association, plays a crucial role in fostering responsible chemical management aligned with global disarmament efforts.

Chhattisgarh Forest Department withdraws directive on Community Forest Resource Rights (CFRR)

1. The Chhattisgarh Forest Department has recently withdrawn a directive that had restricted other government departments, NGOs, and private entities from working on Community Forest Resource Rights (CFRR), a move that was seen as undermining the Forest Rights Act (FRA).

2. This directive was originally issued to align CFRR activities with the National Working Plan Code 2023, aiming to standardize forest management practices.

3. Community Forest Resource Rights (CFRR) are rights provided under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA), empowering communities to manage and conserve forests collectively.

4. Specifically, CFRR grants the community the right to “protect, regenerate, conserve, or manage” the forest resources through the Gram Sabha—the local village assembly responsible for decision-making.

5. The CFR area refers to common forest land that a particular community has traditionally conserved and sustainably used over generations.

6. These rights allow communities to formulate their own rules for forest use by themselves and others, enabling them to fulfill their responsibilities as outlined under the FRA.

7. The National Working Plan Code 2023—originally released by the Ministry of Environment, Forest & Climate Change in 2004 and amended in 2014—serves as the guiding framework for preparing scientific and sustainable working plans for forest divisions across India.

8. The Forest Rights Act, 2006 was enacted to undo historical injustices suffered by forest-dwelling communities by recognizing their rights and ensuring their livelihood and food security.

9. The FRA recognizes two types of forest rights: Individual Rights, which include rights of self-cultivation, habitation, and in-situ rehabilitation, and Community Rights, such as grazing, fishing, access to water bodies, protection of traditional knowledge, and customary rights.

10. The withdrawal of the directive restores the intended collaborative approach under the FRA, allowing multiple stakeholders to support forest communities in managing and protecting their traditional forest resources effectively.

Defence Acquisition Council (DAC)

1. The Defence Acquisition Council (DAC) recently approved capital acquisition proposals worth nearly ₹1.05 lakh crore, marking a significant step in India’s defence modernization.

2. The DAC functions as the apex body responsible for strategic defence acquisition planning and oversight, ensuring coordinated and timely decision-making across India’s defence establishment.

3. Chaired by the Union Minister of Defence, the DAC plays a pivotal role in shaping India’s defence procurement policies and priorities.

4. One of its core functions is to grant ‘in principle’ approval for capital acquisitions included in the Long Term Perspective Plan (LTPP), which outlines India’s defence needs over an extended period.

5. The council also monitors the progress of major defence projects to ensure they meet timelines, budgets, and performance standards.

6. Additionally, the DAC grants the Acceptance of Necessity (AoN) for acquisition proposals, a formal approval that allows procurement processes to begin.

7. These responsibilities highlight the DAC’s critical role in maintaining India’s defence preparedness by facilitating strategic and efficient procurement of defence equipment and technology.

International Olympic Committee (IOC)

1. Recently, the International Olympic Committee (IOC) raised concerns over two major issues: a governance crisis in the Indian Olympic Association and a worrying rise in doping violations, all occurring amid India’s bid to host the 2036 Olympic Games.

2. The IOC, founded in 1894, is an independent, non-profit international organization responsible for overseeing the Olympic Games globally.

3. As the guardian of the Olympic Games, the IOC ensures that the events uphold the values of fair play, ethics, and good governance in sport, promoting integrity at all levels.

4. IOC members serve as representatives of the IOC itself in their respective countries, rather than acting as delegates of their home nations, ensuring impartiality in decision-making.

5. The organization is entirely privately funded, meaning it does not rely on government money, which helps maintain its independence.

6. The headquarters of the IOC is located in Lausanne, Switzerland, serving as the central hub for its operations worldwide.

7. These recent issues flagged by the IOC highlight the challenges facing national sports bodies and emphasize the importance of transparency and anti-doping measures in maintaining the Olympic spirit.

Brief History Timeline of the International Olympic Committee (IOC)

1. 1894: The IOC was founded by Baron Pierre de Coubertin in Paris, aiming to revive the ancient Olympic Games as a modern international sporting event.

2. 1896: The first modern Olympic Games were held in Athens, Greece, under the IOC’s guidance.

3. 1900s: The IOC established key Olympic traditions, including the Olympic flame, rings, and the motto "Citius, Altius, Fortius" (Faster, Higher, Stronger).

4. 1960s–1980s: The IOC expanded its global reach and introduced the Paralympic Games to promote inclusivity.

5. 1999: The IOC adopted the World Anti-Doping Code to combat doping in sports.

6. 2000s–Present: The IOC focuses on sustainability, gender equality, and good governance reforms in national and international sports organizations.

Role of the IOC in Global Sports Governance

1. The IOC acts as the supreme authority of the Olympic Movement, overseeing the organization of the Summer and Winter Olympic Games.

2. It sets rules and standards for sports and competitions to ensure fairness and equal opportunity for athletes worldwide.

3. The IOC promotes ethical practices and good governance to combat corruption, ensure transparency, and uphold the values of Olympism.

4. It plays a central role in anti-doping efforts by enforcing regulations and supporting the World Anti-Doping Agency (WADA).

5. Through its global network, the IOC helps develop sports infrastructure and supports athletes, especially from developing countries.

6. The IOC also drives initiatives on sustainability, inclusivity, and gender equality, aiming to make the Olympic Games a positive force for social change.

Kariyachalli Island

1. Kariyachalli Island, an uninhabited island, has significantly sunk over the past few decades due to rapid coastal erosion and rising sea levels, highlighting environmental concerns.

2. The island is located in the Gulf of Mannar Marine National Park region of Tamil Nadu, situated between the towns of Rameshwaram and Thoothukudi.

3. Coastal erosion refers to the process where land is gradually worn away by natural forces like waves and currents, while rising sea levels result from climate change-induced melting of ice and thermal expansion of seawater.

4. To address these issues, the Tamil Nadu Sustainably Harnessing Ocean Resources (TNSHORE) project aims to restore the damaged coral reefs around Kariyachalli Island.

5. The project plans to use artificial reef modules—man-made structures designed to encourage coral growth—alongside planting seagrass beds, which are important underwater ecosystems that support marine biodiversity.

6. By reviving coral reefs and seagrass beds, the TNSHORE initiative hopes to restore marine life, improve coastal resilience, and protect the island’s ecological health.

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Blue Nile

1. The construction of Ethiopia’s Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile has recently been completed, marking a major milestone.

2. The GERD is considered Africa’s largest hydroelectric project, designed to generate substantial electricity and support regional development.

3. The Blue Nile itself is a significant tributary—meaning a smaller river that flows into a larger one—of the Nile River, the longest river in the world.

4. The Blue Nile originates from Lake Tana in Ethiopia, which serves as its primary source of water.

5. From Ethiopia, the Blue Nile flows westward into Sudan, where it joins the White Nile at Khartoum, the capital city.

6. This confluence of the Blue Nile and White Nile at Khartoum forms the main Nile River, which continues its journey northward through Egypt to the Mediterranean Sea.

   

   Nile, Blue Nile, White Nile

7. The completion of the GERD on the Blue Nile is strategically important, as it affects water flow and regional dynamics in the Nile Basin, a key area for several countries dependent on the river.

Global Peace Index, 2025

1. The 19th edition of the Global Peace Index (GPI) was recently released by the Institute for Economics and Peace (IEP), evaluating the state of peace worldwide.

2. This edition assessed 163 countries using a comprehensive set of 23 qualitative and quantitative indicators that measure peace across three key domains.

3. These domains include: the Level of Societal Safety and Security (which looks at crime rates and social stability), the Extent of Ongoing Domestic and International Conflict (covering wars, terrorism, and political instability), and the Degree of Militarisation (which measures military expenditure, personnel, and weapons stockpiles).

4. A major key finding from the report shows that the average level of global peacefulness has deteriorated, indicating rising instability in many parts of the world.

5. Notably, South Asia, ranked as the second least peaceful region globally, suffered the largest regional decline in peacefulness, highlighting escalating tensions and conflicts.

6. In terms of rankings, Iceland has maintained its position as the most peaceful country in the world, securing the first place on the GPI.

7. Meanwhile, India is ranked 115th, reflecting moderate levels of peace with challenges mainly in internal security and conflicts.

8. At the other extreme, Russia is ranked 163rd, making it the least peaceful country according to this index, due to ongoing conflicts and high militarisation.

9. The Global Peace Index thus provides a critical and detailed measure of how safe and stable countries are, helping policymakers and researchers understand global and regional peace trends.

Polar Anticyclone

1. Recently, Chile and Argentina were ranked among the coldest places on Earth outside the polar regions, primarily due to the impact of a polar anticyclone.

2. A polar anticyclone refers to a wind system formed in regions where high atmospheric pressure develops, especially near the poles or in nearby high-latitude areas.

   

   South America Map

3. This high-pressure system is triggered by intense cooling of surface air layers, which makes the air near the ground colder and denser.

4. As the dense, cold air sinks, it creates a vacuum effect that draws in air from higher atmospheric levels to maintain balance.

5. This vertical movement of air increases the overall mass of air pressing down on the surface, which intensifies the high-pressure zone, thereby forming a strong anticyclone.

6. An anticyclone is essentially a high-pressure area that is surrounded by lower-pressure zones, causing winds to flow outward from its center.

7. The direction of air movement in an anticyclone is influenced by the Coriolis effect: in the Northern Hemisphere, air moves outward and clockwise, while in the Southern Hemisphere, like over Chile and Argentina, it moves outward and anti-clockwise.

8. This outward spiraling of cold, dense air can lead to extremely low surface temperatures, which explains the unusual cold wave recently experienced in parts of South America.

9. Overall, polar anticyclones represent a critical atmospheric phenomenon that can extend beyond polar regions and lead to severe cold events, especially in high-latitude continental interiors or mountainous zones.

Surveillance Pricing

1. Surveillance Pricing, also known as personalized or dynamic pricing, is a pricing strategy where businesses adjust the cost of products or services based on individual consumer data.

2. This practice is increasingly used by online retailers and digital platforms to tailor prices in real-time, aiming to maximize profits and influence consumer behavior.

3. The pricing decisions are based on data collected from users, such as browsing history, location, device type, purchase behavior, and even how long a customer hovers over a product.

   • Browsing history refers to the record of websites and pages a user visits, while purchase history tracks what items a customer has previously bought—both are used to predict willingness to pay.

   • Location data can reveal whether a user is in a high-income area, which may influence whether they are shown higher prices for the same item compared to someone in a different location.

4. This form of pricing has sparked major concerns over fairness, transparency, and consumer exploitation, as the same product may have different prices for different people without their knowledge.

5. In a high-profile case, New York State was sued by the National Retail Federation (NRF), reflecting the growing legal and ethical backlash against such data-driven pricing practices.

6. The National Retail Federation, the world’s largest retail trade association, challenged the legality and fairness of using surveillance-based methods to manipulate pricing structures.

7. The lawsuit raises important debates about data privacy, algorithmic accountability, and the right of consumers to know how their personal information is being used.

8. Ultimately, surveillance pricing represents a powerful but controversial intersection of technology, consumer data, and market economics, pushing regulators and policymakers to consider stricter oversight.

   
   

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