Daily Current Affairs 16 April 2025 – IAS Current Affairs

Current Affairs 16 April 2025 focuses on the Prelims-Mains perspective. Major events are :

India-Cyprus Relations: Bilateral Ties, Trade, DTAA, Diaspora & Strategic Importance

Source: PIB
GS II: International Relations

Overview

1. News in Brief
2. India-Cyprus Relations
3. Way Forward 
4. Cyprus in the World Map

Why in the News?

Prime Minister Shri Narendra Modi, along with the President of Cyprus, H.E. Nikos Christodoulides, held a Roundtable interaction with business leaders from Cyprus and India in Limassol.

News in Brief

• The participants represented diverse sectors such as banking, financial institutions, manufacturing, defence, logistics, maritime, shipping, technology, innovation, digital technologies, AI, IT services, tourism and mobility.
• Cyprus was a significant economic partner for India, particularly in the Foreign Direct Investment sector and welcomed the keen interest in Cyprus for new investments into the Indian economy.
• Cyprus prepares to assume the Presidency of the EU Council next year.
• The roundtable had given practical suggestions which would form the basis for a structured economic roadmap, ensuring long-term collaboration in trade, innovation and strategic sectors.

India-Cyprus Relations

• India-Cyprus relations are marked by longstanding historical ties, strategic relevance, and growing contemporary importance.
• Dating back to ancient times, both nations shared cultural exchanges through trade and maritime routes.
• Diplomatic relations were formally established in 1962
• Since then, Cyprus has remained a consistent supporter of India on key international issues, including its stance on Kashmir and India’s bid for a permanent seat in the UN Security Council.
• As a member of the European Union, Cyprus acts as a strategic partner for India in fostering relations with Europe and the Mediterranean region.
• Economic cooperation, particularly in investment, shipping, and education, has seen considerable growth in recent years.
• Additionally, collaboration in areas like IT, renewable energy, and tourism further strengthens bilateral ties.
• For India, enhancing its engagement with Cyprus aligns with its broader foreign policy objectives. These evolving dynamics make India-Cyprus relations highly relevant for UPSC aspirants studying global strategic partnerships.

Historical Background

• The historical background of India-Cyprus relations is rooted in shared civilizational links and a common struggle against colonialism.
• Both nations gained independence in the mid-20th century
  • India in 1947
  • Cyprus in 1960
• Both nations have since shared cordial and cooperative relations.
• Initial relation
  • Diplomatic relations were established in 1962.
  • This marks the beginning of a strong bilateral partnership based on mutual respect, democratic values, and non-alignment principles.
  • India has consistently supported the sovereignty, unity, and territorial integrity of Cyprus, especially in the context of the Cyprus issue involving Turkish occupation of Northern Cyprus.
  • In return, Cyprus has extended unwavering support to India in international forums, including its long-standing endorsement for India’s permanent membership in the United Nations Security Council (UNSC).
  • High-level visits have further strengthened diplomatic ties.
  • Notably, the President of Cyprus, Nicos Anastasiades, visited India in 2017, meeting Prime Minister Narendra Modi and signing multiple agreements in areas such as air services and merchant shipping.
  • Prime Minister Modi has also interacted with Cypriot leaders on the sidelines of international summits, reaffirming India’s commitment to deepening ties.
  • This robust historical and diplomatic engagement underscores the strategic nature of India-Cyprus relations.

Economic and Trade Relations

• India–Cyprus
  • Bilateral Trade with Cyprus reached approximately USD 137 million in FY 2023–24
  • This signals a modest but stable commercial relationship.
• Information Technology & Digital Services
  • With over 7,000 Indians residing in Cyprus—primarily IT professionals—Indian expertise supports Cypriot firms, especially in fintech and cybersecurity.
• Pharmaceuticals
  • India, the world’s third‐largest producer by volume, exports a wide range of generic medicines to Cyprus, reinforcing its global pharma outreach.
• Infrastructure, Machinery & Vehicles
  • Indian exports include machinery, vehicles, and electrical equipment, while Cyprus exports iron, steel products, and industrial machinery to India.
• Tourism & Shipping
  • Cyprus is a leading maritime centre in the Mediterranean, attracting Indian tourists and investors
  • Bilateral MoUs in shipping and air connectivity aim to harness this potential.
• Investment & FDI
  • Cyprus has been a major conduit for FDI into India.
  • Between April 2000 and September 2015, it was among India’s top 10 FDI sources, contributing over USD 8.3 billion, particularly in services, real estate, software, automotive, shipping, and pharmaceuticals.
• Tax efficiency and a revised DTAA (2016) have made Cyprus an attractive gateway for European investment.

India-Cyprus DTAA (Double Taxation Avoidance Agreement)

• The India-Cyprus DTAA (Double Taxation Avoidance Agreement) was originally signed in 1994 to prevent double taxation and promote cross-border investments.
• Due to concerns over round-tripping a method where Indian entities route money through Cyprus to reinvest in India, led to its revised version in 2016.
• The revision aimed to curb tax evasion and enhance transparency in line with global standards.
• Under the amended tax treaty, India gained the right to tax capital gains arising from the alienation of shares acquired on or after April 1, 2017.
• This move discouraged the misuse of the agreement for black money generation and ensured more legitimate and compliant FDI inflows from Cyprus.
• Consequently, Cyprus was removed from India’s list of “Notified Jurisdictions.”
• The revised India-Cyprus DTAA has strengthened economic relations, promoted clean investment flows, and supported India’s efforts in building a transparent tax regime.

Indian Diaspora in Cyprus

• Approximately 8,000 to 10,000 Indians currently reside in Cyprus, contributing actively to its economy and society.
• Indian diaspora includes IT professionals, hospitality workers, and a growing number of students pursuing higher education.
• The Indian community plays a vital role in sectors such as technology, tourism, and healthcare.
• Indian associations in Cyprus promote cultural diplomacy by organising festivals and fostering people-to-people connections.
• Their presence not only strengthens bilateral ties but also enhances India’s soft power in the Mediterranean region, making the diaspora a strategic asset in India-Cyprus relations.

Strategic and Political Cooperation

• India and Cyprus share strong strategic and political cooperation, rooted in mutual respect for democracy, sovereignty, and a rules-based international order.
• Cyprus has consistently supported India’s candidatures in international forums, including its bid for a permanent seat in the United Nations Security Council (UNSC).
• Both countries actively cooperate in multilateral platforms such as the United Nations, the Commonwealth, and the Non-Aligned Movement (NAM).
• This alignment on global issues strengthens their diplomatic engagement and enhances India’s outreach in the Mediterranean region, making their partnership a key component of India’s evolving foreign policy architecture.

Way Forward

• Deepening trade ties in new sectors: renewable energy, digital tech.
• Promoting people-to-people links through education and cultural exchanges.
• Strengthening strategic cooperation at multilateral platforms.
• Leveraging Cyprus’ EU status for India’s European outreach.

Cyprus in the World Map

Global Wind Day 2025

Source: PIB
GS III: Conservation, environmental pollution and degradation, environmental impact assessment

Overview

1. News in Brief
2. About Global Wind Day
3. India and Wind Energy

Why in the News?

On the occasion of Global Wind Day 2025, the Union Minister of New and Renewable Energy addressed a conference.

News in Brief

• In order to become a global manufacturing hub, India needs energy.
• Be it solar energy, wind energy or any other form of energy.
• Our national goals are ambitious and clear: 50% of our power capacity from non-fossil fuel sources by 2030, and a net-zero India by 2070.
• Wind energy is central to achieving these goals.
• Wind energy is not a component of our renewable energy strategy, but it is at the heart of it and at the centre of Atma Nirbhar Bharat.

About Global Wind Day

• Global Wind Day is celebrated on 15th June to mark the development of wind energy, and with the Government’s consistent policy support, the Wind Energy Sector has displayed substantial growth.
• Organised by the Ministry of New and Renewable Energy, the event, through the participation of key stakeholders from central and state government authorities, DISCOMs, CPSUs, the wind industry, academia, think tanks, etc.
• It aims to facilitate conversations on key aspects, including the country’s progress of wind energy development.
• The event is also supported by Wind Independent Power Producers Associations (WIPPA), Indian Wind Turbine Manufacturers Association (IWTMA), and Indian Wind Power Association (IWPA).

Importance of Global Wind Day

• Explore wind energy, its power and the possibilities it holds to change the world for a clean future environment.
• It is crucial for the health of humankind and the planet. The wind is created by three simultaneous events
  • The sun heats the atmosphere unevenly
  • Surface irregularities of the Earth
  • Earth’s rotation

Who does the day focus on and how?

• Communities, industry leaders, governments and campaigners across the world are calling for a clean.
• Cost-effective and homegrown power source transforming our global energy system to push for a fairer and greener energy future.

How does Wind Energy Limit Global Warming?

• One of the electricity sources with the quickest rate of growth in the world is wind energy.
• It is a key component of the transition away from fossil fuels is wind power.
• In many markets, it is now one of the least expensive sources of additional power.
• Allowing nations to quickly and economically decarbonise their systems.
• Wind energy increases energy independence and protects economies from unstable international markets and geopolitical shocks by lowering dependency on imported fossil fuels.
• It will help reduce greenhouse gas.
• By 2030, we need to treble the capacity of renewable energy sources in order to keep global warming to 1.5°C.
• The promise will undoubtedly come from wind energy.

India and Wind Energy

Funding and Wind Turbine

• In 2025 the renewable energy budget has gone up by 53%, to ₹26,549 crore, with a large share directed to wind.
• India has huge potential in the renewable energy sector as it has globally the fourth largest wind power installed capacity.
• India is third third-largest renewable energy producer.
• India is manufacturing wind turbines ranging from 225 kW to 5.2 MW, with 33 models being produced by 14 companies.
• These turbines meet our domestic needs and are also cost-competitive globally.

National Offshore Wind Energy Policy was notified in October 2015 with an objective to develop offshore wind energy in the Indian Exclusive Economic Zone (EEZ) along the Indian coastline of 7600 km.

India is focusing on 5 priorities

1. Expanding into new states like Madhya Pradesh, Telangana, and Odisha.
2. Launching the offshore sector with 4 GW of leasing areas identified in Gujarat and Tamil Nadu, and tenders being readied.
3. Integrating wind into round-the-clock and firm green power strategies, through storage-linked business models.
4. Modernising the grid, investing in AI-based forecasting to manage variable renewable energy.
5. Boosting local manufacturing across the entire wind value chain.

Wind Energy Roadmap and Manufacturing Roadmap

• Documents will serve as guiding frameworks for our journey ahead and reflect our collective ambition, strategic thinking, and commitment to building a strong and Aatmanirbhar wind energy ecosystem in India.
• Best-performing States in terms of Wind Capacity addition were also felicitated at the event.
• Karnataka was first with a wind capacity addition of 1331.48 MW, followed by Tamil Nadu (1136.37 MW) and Gujarat (954.76 MW).

3 key issues for the Wind Energy sector

• India must combine wind with solar and storage (BESS) to deliver round-the-clock power and grid stability.
• Tariffs must be competitive, ie a rate of ₹3.90 per unit is too high, and India must work together to reduce costs.
• Domestic manufacturing must become more efficient, not just to meet our targets, but to boost exports.

Rudrastra Drone

Source: India Today
GS II: Science and Technology

Overview

1. News in Brief
2. About Rudrastra Drone
3. What is Vertical Take-Off and Landing (VTOL)?

Why in the News?

Recently army successfully tested the Rudrastra Drone.

News in Brief

• Nagpur-based Solar Defence and Aerospace Limited (SDAL) has successfully completed a crucial trial of its hybrid Vertical Take-Off and Landing (VTOL) UAV, Rudrastra.
• Test conducted at the Pokharan Firing Range.
• Conducted under stringent performance parameters set by the Indian Army.
• Rudrastra covered a mission radius of over 50 km while maintaining a stable real-time video feed.

About Rudrastra Drone

• Range: Total range of 170 km, including loitering time.
• Endurance: Up to 1.5 hours of flight time.
• Warhead: Equipped with airburst munitions, effective for anti-personnel roles.
• Strike Mechanism: High-altitude deployment to maximise destruction over a wide radius.
• Features: Can operate autonomously, relay real-time video, and return to base.
• Drone can take down targets at a range of over 50 KM.

What is Vertical Take-Off and Landing (VTOL)?

• Vertical Take-Off and Landing (VTOL) aircraft are advanced vehicles capable of ascending and descending vertically without the need for traditional runways.
• They combine the benefits of helicopters and fixed-wing aircraft, offering flexibility in takeoff/landing and high-speed flight.
• VTOL technology is rapidly evolving and plays a significant role in military, urban air mobility, and disaster relief operations.

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