Current Affairs

Current Affairs — 7 August 2025

7 August 2025

U.S. imposes 50% tariffs on Indian imports over Russian oil trade

The U.S. President signed an executive order imposing an additional 25% tariff on Indian imports, bringing the total tariff to 50%, citing India's direct or indirect import of Russian oil. The Ministry of External Affairs (MEA) criticized these actions as "unfair, unjustified, and unreasonable," emphasizing India's energy security needs and market-driven imports. The MEA also highlighted that the U.S. and EU engage in significant trade with Russia, exceeding India's oil imports. This move is considered a "severe setback" for Indian exports and complicates ongoing bilateral trade agreement negotiations.

  • The U.S. imposed an additional 25% tariff on Indian imports, raising the total to 50%, citing India's oil imports from Russia.
  • India's Ministry of External Affairs (MEA) criticized the tariffs as "unfair, unjustified, and unreasonable," emphasizing India's energy security needs.
  • The MEA pointed out that the U.S. and EU also engage in significant trade with Russia, exceeding India's oil imports.
Exam Points
  • U.S. President Donald Trump signed an executive order for an additional 25% tariff on Indian imports.
  • The total tariff on Indian imports by the U.S. is now 50% (initial 25% on July 31, additional 25% now).
  • The MEA stated India's imports are based on market factors and ensuring energy security for 1.4 billion people.
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Governments urged to monitor silt accumulation to prevent Himalayan disasters

A recent disaster in Uttarkashi, Uttarakhand, caused by heavy rainfall and a cloudburst-like event, highlights the persistent risk of destabilization in the Himalayas. The article criticizes state authorities' tendency to label such events as 'cloudbursts' to claim helplessness, noting the India Meteorological Department's (IMD) specific definition of 10 cm of rain in an hour over 10 sq km, which is difficult to compute at high altitudes. It suggests that continuous heavy rain loosens soil, leading to large volumes of silt and water. Climate change increases extreme rainfall events, making infrastructure projects in hills vulnerable. Governments must review debris and silt accumulation to mitigate future climate change impacts.

  • The Uttarkashi disaster underscores the persistent risk of destabilization in the Himalayas due to extreme weather events.
  • The article criticizes the simplistic categorization of such events as 'cloudbursts' by authorities, which can lead to claims of helplessness.
  • It highlights that continuous heavy rainfall, loosened soil, and accumulated silt contribute to the severity of these disasters.
Exam Points
  • The disaster occurred in Uttarkashi district of Uttarakhand.
  • The India Meteorological Department (IMD) defines a cloudburst as 10 cm of rain in an hour over 10 square kilometres.
  • The event involved the Kheer Ganga river.
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Decoding China: Lessons for India amidst its geo-economic strategies and vulnerabilities

China's actions, such as the exodus of engineers from Foxconn's iPhone manufacturing facilities in India and restrictions on critical mineral exports, are seen as deliberate geo-economic maneuvers to impede India's manufacturing ambitions and maintain China's economic hegemony. These strategies aim to prevent technology transfer and keep India dependent on Chinese inputs. The article highlights China's internal vulnerabilities, including an aging population, property crisis, and industrial overcapacity, which compel it to rely heavily on exports. China's aggressive pricing and market capture are described as 'economic statecraft.' India, with its nascent manufacturing ecosystem, needs strategic autonomy and foundational development, especially given U.S. tariffs on Indian imports despite China's larger trade with Russia.

  • China employs geo-economic strategies, including restricting technology transfer and critical mineral exports, to hinder India's manufacturing growth.
  • These actions are driven by China's internal economic compulsions like an aging population, property crisis, and industrial overcapacity, necessitating strong export revenues.
  • China's aggressive market strategies, such as price suppression and flooding markets, are described as 'economic statecraft' to solidify its global market share.
Exam Points
  • Foxconn's iPhone 17 manufacturing facilities are located in Tamil Nadu and Karnataka.
  • China restricts exports of rare earths (gallium, germanium, graphite) and rare earth magnets.
  • China's trade surplus is on the cusp of a trillion dollars.
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Parliament passes legislation to modernise India's maritime laws, enhancing trade and efficiency

Parliament passed two key maritime legislations: The Carriage of Goods by Sea Bill, 2025, and The Merchant Shipping Bill, 2024. The Merchant Shipping Bill, 2024, replaces the outdated 1958 Act, aiming to align India's maritime legal framework with global standards and strengthen its position as a trusted maritime trade hub. The Carriage of Goods by Sea Bill, 2025, repeals the 1925 Act, simplifying maritime trade laws, reducing litigation risks, and enhancing transparency and commercial efficiency in cargo movement. These bills reflect the Modi government's push for modern shipping and double endorsement from Parliament.

  • Parliament passed two significant maritime legislations: The Carriage of Goods by Sea Bill, 2025, and The Merchant Shipping Bill, 2024.
  • The Merchant Shipping Bill, 2024, replaces the Merchant Shipping Act of 1958, modernizing India's maritime legal framework.
  • This legislation aims to align with global standards and establish India as a trusted maritime trade hub.
Exam Points
  • The Merchant Shipping Bill, 2024, replaces the Merchant Shipping Act of 1958.
  • The Carriage of Goods by Sea Bill, 2025, repeals the Indian Carriage of Goods by Sea Act, 1925.
  • Union Minister of Ports, Shipping and Waterways: Sarbananda Sonowal.
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PM Modi urges collective effort to make India the world's third largest economy

Prime Minister Narendra Modi urged all stakeholders to work together to make India the world's third largest economy and scale up national productivity, speaking at the inauguration of Kartavya Bhavan 3. He highlighted India's key achievements and infrastructure landmarks like Kartavya Path, the new Parliament Building, and Bharat Mandapam, emphasizing that future policies for a developed India would be formulated in these new structures. Modi criticized the previous administrative setup operating from old colonial buildings with poor conditions and high rental costs, asserting his government's holistic vision for nation-building and development across the country.

  • PM Modi called for collective efforts to elevate India to the world's third largest economy and boost national productivity.
  • He inaugurated Kartavya Bhavan 3, emphasizing that these new infrastructure projects symbolize India's global vision and future policy formulation.
  • Modi highlighted recent infrastructure achievements like Kartavya Path, the new Parliament Building, and Bharat Mandapam.
Exam Points
  • Prime Minister Narendra Modi inaugurated Kartavya Bhavan 3.
  • India aims to become the world's third largest economy.
  • Mentioned infrastructure landmarks: Kartavya Path, new Parliament Building, new Defence Offices Complex, Bharat Mandapam, Yashobhoomi, National War Memorial.
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Fishing gear and riverine inputs are major sources of microplastic contamination along Indian coasts

Union Minister Jitendra Singh stated that 'riverine inputs' and abandoned, lost, and discarded fishing gear (ALDFG) are the primary sources of microplastic pollution along India's coasts. Field surveys by the National Centre for Coastal Research (NCCR) under the Ministry of Earth Sciences (MoES) confirmed this, covering transects along both east and west coasts. Microplastics, tiny plastic particles ranging from 1 micrometre to 5 millimetres, are a major concern due to their increasing links to tumors and toxicity to marine and aquatic life. The Food Safety and Standards Authority of India (FSSAI) has commissioned a project to assess microplastic contamination in food products.

  • Riverine inputs and abandoned, lost, and discarded fishing gear (ALDFG) are identified as major sources of microplastic pollution on Indian coasts.
  • Surveys by the National Centre for Coastal Research (NCCR) confirmed these findings across India's east and west coasts.
  • Microplastics are tiny plastic particles (1 micrometre to 5 millimetres) formed from primary sources or breakdown of larger plastics.
Exam Points
  • Union Minister of State for Science and Technology: Jitendra Singh.
  • National Centre for Coastal Research (NCCR) under the Ministry of Earth Sciences (MoES) conducted surveys.
  • Microplastics range in size from 1 micrometre to 5 millimetres.
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RBI's MPC maintains repo rate at 5.5% and projects GDP growth at 6.5% for 2025-26

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted to maintain the policy repo rate at 5.50% and a neutral stance, aiming for 4% CPI inflation within a +/- 2% band while supporting growth. Consequently, the standing deposit facility (SDF) rate remains at 5.25% and the marginal standing facility (MSF) rate at 5.75%. Despite global challenges like prolonged geopolitical tensions and market volatility, domestic growth remains resilient. The MPC projected real GDP growth for 2025-26 at 6.5% and CPI inflation for 2025-26 at 3.1%, with risks evenly balanced.

  • The RBI's Monetary Policy Committee (MPC) decided to keep the policy repo rate unchanged at 5.50%.
  • The decision maintains a neutral stance, targeting CPI inflation at 4% (+/- 2%) while supporting economic growth.
  • The Standing Deposit Facility (SDF) rate is 5.25%, and the Marginal Standing Facility (MSF) rate is 5.75%.
Exam Points
  • Policy repo rate: 5.50%.
  • Standing Deposit Facility (SDF) rate: 5.25%.
  • Marginal Standing Facility (MSF) rate and Bank Rate: 5.75%.
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Biochar: Potential as a carbon removal technology and its multi-sectoral applications in India

Biochar, a carbon-rich charcoal produced from agricultural residue and organic waste, is poised to play a crucial role in India's carbon market, set to launch in 2026. India generates vast amounts of waste, much of which is openly burnt, contributing to pollution. Utilizing 30-50% of this surplus waste could yield 15-26 million tonnes of biochar annually, removing 0.1 gigatonnes of CO2-equivalent. Biochar acts as a stable carbon sink for 100-1,000 years, improving soil water retention, reducing nitrous oxide emissions, and enhancing soil organic carbon. It also has potential in construction as a low-carbon building material and in wastewater treatment. Despite its potential, biochar faces hurdles like lack of standardized markets, investor confidence, and insufficient policy support, requiring R&D and integration into climate strategies for large-scale adoption.

  • Biochar, produced from agricultural and organic waste, is a promising CO2 removal technology for India's upcoming carbon market.
  • India's large waste generation offers significant potential for biochar production, capable of removing substantial CO2-equivalent annually.
  • Biochar acts as a long-term carbon sink in soil, improving water retention, reducing nitrous oxide, and enhancing soil organic carbon.
Exam Points
  • India's carbon market is set to launch in 2026.
  • India generates over 600 million metric tonnes of agricultural residue and over 60 million tonnes of municipal solid waste annually.
  • Biochar can hold carbon in soil for 100-1,000 years.
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