Current Affairs 16 september 2025 – Tone Academy
India-Iran-Uzbekistan Trilateral Meeting Syllabus: GS2 / International Relations In News: The first India-Iran-Uzbekistan trilateral meeting was held in Tehran, focusing on extremism, terrorism, and promoting use of Chabahar Port by Uzbekistan for trade with India. Background:•Uzbekistan, a double-landlocked Central Asian nation, seeks sea connectivity via Iran.•India and Iran already cooperate through INSTC and Chabahar Port projects. Parallel trilateral: India-Iran-Armenia also discussed INSTC & Chabahar.•Kazakhstan & Tajikistan have also shown interest in Chabahar.• India pursuing an early harvest FTA with the Eurasian Economic Union (EAEU) for trade & access to rare earths. About Chabahar Port• Deep-water port in Sistan-Baluchistan province, Iran.• Closest Iranian port to India; located outside Persian Gulf choke points.• Part of International North-South Transport Corridor (INSTC). About INSTC• Initiated by India, Iran, Russia (2000).• Multi-modal corridor (sea–road–rail) linking Indian Ocean & Persian Gulf → Caspian Sea → Russia → Europe.• Cuts transit time & cost compared to Suez Canal route. Significance•Strategic: Counters Pakistan’s Gwadar port & enhances India’s access to Central Asia.•Economic: Boosts India’s connectivity for energy & mineral imports.• Geopolitical: Positions India as a regional stakeholder, balancing China’s BRI. Do You Know?• Uzbekistan is double landlocked (surrounded by landlocked states only; the other such country is Liechtenstein).• Chabahar project exempted from US sanctions on Iran (2018). With reference to the International North-South Transport Corridor (INSTC), consider the following statements: It connects the Indian Ocean and Persian Gulf to the Caspian Sea and onwards to Europe. It was jointly initiated by India, Iran, and Uzbekistan. It aims to reduce time & cost of transit compared to the Suez Canal route. Which of the above statements are correct?a) 1 and 2 onlyb) 1 and 3 onlyc) 2 and 3 onlyd) 1, 2 and 3 Answer: (b) 1 and 3 onlyExplanation:• Correct → Statement 1 (route).• Incorrect → Statement 2 (initiated by India, Iran, Russia; not Uzbekistan).• Correct → Statement 3 (faster & cheaper than Suez route). UPI Transactions Reach Record High in May, Surpass ₹25 Trillion Mark for First Time Syllabus:Economy Unified Payments Interface (UPI) transactions reached a record high in May 2025, with 68 billion transactions amounting to ₹25.14 trillion in value. Month-on-Month Growth: Volume: Increased by 4% (from 17.89 billion in April to 18.68 billion) Value: Increased by 5% (from ₹23.95 trillion in April to ₹25.14 trillion) This surpassed the previous peak recorded in March 2025, which stood at 3 billion transactions worth ₹24.77 trillion. Daily Averages: Daily transaction volume rose from 596 million (April) to 602 million (May) Daily transaction value increased from ₹79,831 crore to ₹81,106 crore Drivers of UPI Growth: Government’s post-demonetisation push for digital payments Widespread smartphone adoption Active participation of major private players such as Google Pay, PhonePe, and Paytm To further support low-value digital transactions, the Union Cabinet approved a ₹1,500 crore incentive scheme aimed at subsidizing the cost burden within the UPI ecosystem. Policy Appeal from the Industry: The Payments Council of India (PCI), representing digital payment companies, urged the Prime Minister to: Reintroduce the Merchant Discount Rate (MDR) on UPI and RuPay debit card transactions Proposed 3% MDR for large UPI merchants Suggested a nominal MDR on RuPay debit card payments across merchant categories The request aims to ensure the sustainability of digital payment infrastructure while maintaining affordability for users. Consider the following statements regarding UPI transaction trends in May 2025: The daily average transaction value exceeded ₹82,000 crore. May 2025 marked the highest-ever recorded monthly volume and value in UPI history. The month-on-month growth in UPI transaction value was greater than that of transaction volume. Which of the statements given above is/are correct? A. 1 and 2 onlyB. 2 and 3 onlyC. 1 and 3 onlyD. 1, 2, and 3 The correct answer is: B. 2 and 3 only Explanation: Statement 1: “The daily average transaction value exceeded ₹82,000 crore.”From the data:Daily transaction value in May 2025 = ₹81,106 crore This is less than ₹82,000 crore Statement 2: “May 2025 marked the highest-ever recorded monthly volume and value in UPI history.” Volume: 68 billion Value: ₹25.14 trillion Previous high (March 2025): Volume: 3 billion Value: ₹24.77 trillion Statement 3: “The month-on-month growth in UPI transaction value was greater than that of transaction volume.” From the data: Growth in volume: April: 17.89 billion → May: 18.68 billion Growth: ~4.4% Growth in value: April: ₹23.95 trillion → May: ₹25.14 trillion Growth: ~5% Asian Development Bank unveils $10 billion scheme to revamp India’s urban infrastructure and services Syllabus:Economy Asian Development Bank’s $10 Billion Urban Transformation Plan for India The Asian Development Bank (ADB) has announced a $10 billion initiative aimed at catalyzing India’s urban transformation, aligning with the nation’s Viksit Bharat 2047 vision. Key Highlights of the Initiative Announced following a three-day visit by ADB President Masato Kanda, during which he met Prime Minister Narendra Modi. The package comprises: Sovereign loans Private sector financing Third-party capital mobilization Anchored by India’s flagship Urban Challenge Fund (UCF), supported by ADB to attract private sector investments into critical urban infrastructure. Project Scope and Preparation Analytical groundwork has been completed for: Growth hubs Creative city redevelopment Water and sanitation upgrades These initiatives span 100 cities across India, forming the foundation for UCF deployment. ADB is extending $3 million in technical assistance to help design bankable urban projects and build capacity in state governments and Urban Local Bodies (ULBs). Urbanization Trends and ADB’s Role By 2030, over 40% of India’s population is expected to reside in urban areas, increasing the urgency for infrastructure development. ADB has already engaged with 110+ cities in 22 states, implementing projects in: Water supply Sanitation Affordable housing Solid waste management Current ADB Portfolio in Urban Sector ADB’s active urban portfolio in India includes 27 loans totaling $5.15 billion. About Asian Development Bank (ADB) Established: 1966 Headquarters: Mandaluyong, Metro Manila, Philippines President: Masato Kanda Membership: 69 countries With reference to the Asian Development Bank’s (ADB) recent urban development initiative in India, consider the following