Current Affairs: August 02, 2025
India-US Relations and Global Trade
US-India relations face continued strain following the US imposition of a 25% tariff on Indian goods, citing trade imbalances and India's ties with Russia. These tariffs came into effect on August 7th, risking Indian exports worth $85 billion. The Indian government downplayed the impact, reiterating its commitment to national interests and the resilience of the partnership. The Ministry of External Affairs affirmed the strength of the relationship despite the challenges, emphasizing its ability to withstand transitions and challenges. Russia, however, criticized the US actions, accusing it of undermining its own relations with India through threats and sanctions related to India-Russia ties, according to Russia's RT news network. India's apparel exporters expressed concern over the high tariffs compared to other nations like Bangladesh and Vietnam and sought government intervention.
Economy and Finance
The Indian equity markets saw a decline, with the Sensex closing 586 points lower and the Nifty below 24,600, influenced by the US tariffs and sustained foreign fund outflows. Pharma and IT sectors were particularly hit, reflecting the pressure from the US trade policy. In positive news, the Indian rupee saw a significant recovery, ending 47 paise higher at 87.18 against the US dollar. This recovery was attributed to lower crude oil prices, suspected RBI intervention, and slower-than-expected US job growth, which weakened the dollar. The {Link: Banking Laws (Amendment) Act, 2025 https://www.pib.gov.in/PressReleseDetail.aspx?PRID=2150371} came into effect on August 1st, introducing reforms such as redefining 'substantial interest', increasing cooperative bank director tenures, and allowing PSBs to transfer unclaimed assets to the IEPF. These amendments aim to enhance governance, protect investors, and improve audit quality in the banking sector.
Government Initiatives & Schemes
The Prime Minister, Narendra Modi, released the 20th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme on August 2nd from Varanasi. This installment disbursed ₹20,500 crore to over 9.7 crore eligible farmers through Direct Benefit Transfer. Since its launch in 2019, the scheme has provided ₹3.69 lakh crore to farmers. The PM-VBRY (Viksit Bharat Rozgar Yojana), an employment linked incentive scheme, also came into effect on August 1st, aiming to create over 3.5 crore jobs and provide financial assistance to first-time job seekers.
Science and Technology
ISRO commenced a 10-day analogue mission in Ladakh to simulate life in space. Two analogue crew members will live in isolation at the Himalayan Outpost for Planetary Exploration (HOPE) facility, designed to resemble the lunar and Martian terrains. ISRO chairman V Narayanan inaugurated the facility at Tso Kar, Ladakh, established by Bengaluru-based firm Protoplanet. This mission aims to test protocols for long-duration spaceflights.
Sports
In cricket, India showed resilience in the Oval Test against England. After being bowled out for 224 in the first innings, India, led by a brave half-century from Yashasvi Jaiswal, ended Day 2 with a 52-run lead, reaching 75 for 2. Mohammed Siraj was a standout performer for India, claiming four crucial wickets, including those of Joe Root and Harry Brook. Siraj also became the leading wicket-taker of the series with 18 wickets. In football, the All India Football Federation (AIFF) appointed Khalid Jamil as the new coach for the Indian national football team, making him the first home-grown coach since 2012.
Other Developments
- The Monsoon Session of Parliament saw disruptions over the Special Intensive Revision (SIR) of electoral rolls in Bihar.
- Union Home Minister Amit Shah introduced a resolution in the Rajya Sabha for the continuation of President's rule in Manipur for another six months.
- A British parliamentary report listed India among countries involved in transnational repression, a claim rejected by the Ministry of External Affairs as "baseless".
- Prime Minister Modi's visit to the Maldives and agreements on lines of credit and a free trade agreement signaled a warming of ties between the two nations.