Current Affairs: August 04, 2025 – Key Updates for Competitive Exams

National Highlights

RBI Approves Merger of New India Co-operative Bank with Saraswat Bank

On August 1, 2025, the Reserve Bank of India (RBI) approved the voluntary merger of New India Co-operative Bank Ltd. with Saraswat Co-operative Bank Ltd., which became effective from August 4, 2025. This move aims to stabilize the urban co-operative banking sector and protect depositor interests, particularly after a ₹122 crore embezzlement scandal at New India Co-operative Bank that led to RBI appointing an administrator in February 2025. All 27 branches of New India Co-operative Bank will now operate as Saraswat Bank outlets, and over 1.22 lakh depositors previously impacted by withdrawal restrictions will now be served by Saraswat Bank. This highlights the RBI's ongoing efforts to consolidate the cooperative banking sector, creating stronger, more competitive institutions capable of supporting financial inclusion.

Revival of Sawalkote Hydropower Project in Jammu and Kashmir

India is reviving the Sawalkote Hydropower Project on the Chenab River in Jammu and Kashmir, a project expected to cost ₹22,704 crore. This 2,185 MW run-of-the-river plant, first envisioned six decades ago, had been stalled due to the Indus Waters Treaty and environmental concerns but has now been cleared for revival. The project aims to transform J&K into a power-surplus region, meeting local demand and potentially exporting surplus electricity to the national grid. The revival follows India's suspension of the Indus Waters Treaty post the April 2025 Pahalgam terror attack, marking a decisive shift in India's strategic posture and national policy regarding river rights.

Expansion of Pradhan Mantri National Dialysis Programme (PMNDP)

The Pradhan Mantri National Dialysis Programme (PMNDP) has significantly expanded its reach, now operational across all 36 States and Union Territories and covering 751 districts. As of June 30, 2025, a total of 1,704 dialysis centers are functional under the programme, which provides free dialysis services to patients suffering from end-stage kidney failure, particularly benefiting Below Poverty Line (BPL) beneficiaries. The program supports both Haemodialysis and Peritoneal Dialysis services, and its expansion is based on gap assessments conducted by States and UTs as part of their annual Programme Implementation Plans. The Union Minister of State for Health and Family Welfare, Prataprao Jadhav, provided this update in a written reply in the Lok Sabha.

Ministry of Petroleum and Natural Gas Launches 'Apna Ghar' for Truckers

The Ministry of Petroleum and Natural Gas launched the 'Apna Ghar' initiative to provide hygienic, safe, and comfortable resting facilities for truck drivers along major highways. This program aims to improve the safety, health, and comfort of India's trucking workforce, who often spend long hours on the road without access to proper resting spaces. As of July 1, 2025, 368 'Apna Ghar' units equipped with 4,611 beds have been established at retail fuel outlets of Public Sector Oil Marketing Companies (OMCs) along national and state highways. These facilities include dormitories, restaurants/dhabas, clean toilets, bathing areas, self-cooking spaces, and purified drinking water.

Lt Gen Pushpendra Singh Assumes Charge as Vice Chief of Army Staff

Lieutenant General Pushpendra Singh, an officer of the Indian Army's Parachute Regiment, took over as the Vice Chief of Army Staff (VCOAS) on August 1, 2025, succeeding Lt Gen NS Raja Subramani. His appointment comes at a time when India is undergoing major military reforms and facing new strategic challenges. Lt Gen Singh, a decorated special forces veteran and alumnus of La Martinière College and Lucknow University, brings over 35 years of distinguished service to the role, and his leadership is expected to strengthen India's defense preparedness.

International Relations & Economy

US Imposes Tariffs on Indian Imports

On August 6, 2025, US President Donald Trump announced additional tariffs on Indian goods, increasing the total import duties to 50%. This follows an earlier 25% duty implemented on August 1, 2025, and is cited as a response to India's continued purchase of Russian oil amidst geopolitical tensions. This has strained India-US relations, which previously aimed to double bilateral trade to USD 500 billion by 2030. The tariffs, imposed under national security and unfair trade practices sections of US trade laws, significantly impact sectors like textiles, gems and jewellery, leather, and auto parts, putting at risk $87 billion worth of India's exports to the US. Exemptions apply to pharmaceuticals, semiconductors, energy resources, and critical minerals. India has condemned the tariffs as unfair and emphasized its right to make independent energy decisions. India is considering a multi-pronged strategy to respond to the tariffs, including diplomatic engagement, potential retaliation, and diversifying export destinations.

Fitch Lowers India's FY26 GDP Growth Forecast

Fitch Ratings trimmed India's FY26 GDP growth forecast to 6.3% from its earlier estimate of 6.4%, citing potential impacts from US tariffs and excess global supply redirecting to India. However, the report also suggests the direct fallout on Indian corporates from the tariffs will be limited due to low-to-moderate exposure to US exports. Fitch expects robust infrastructure spending to underpin healthy demand for core sectors like cement, building materials, electricity, and steel, supporting credit metrics for rated Indian companies.

National Stock Exchange Settles Charges with SEBI

The National Stock Exchange (NSE) settled charges with SEBI for ₹40.35 crore over lapses in data handling, outsourcing practices, and compliance failures. The settlement order, passed on July 31, 2025, brings closure to a case stemming from SEBI's inspection between February 2021 and March 2022. This involved the premature sharing of unpublished price-sensitive information (UPSI) and allowing a third-party vendor to store media tapes containing historical trade data without a formal contract. The settlement, reached without admitting or denying guilt, could help the NSE move closer to reviving its long-pending IPO plans.

Technology and Environment

India Considers Repairability Index for Electronics

India is exploring the introduction of a Repairability Index for electronic products like smartphones, washing machines, and refrigerators. This initiative aims to empower consumers to make informed choices by rating products based on their ease of repair, promoting a circular economy and reducing electronic waste. The Department of Consumer Affairs constituted a committee in September 2024 to develop the framework for the index.

Thar Desert Wind Farms Raise Concerns Over Bird Mortality

A study by the Wildlife Institute of India (WII) revealed that wind farms in India's Thar Desert have the world's highest recorded bird mortality rates, with annual estimated bird mortality reaching 4,464 birds per 1,000 sq. km. This raises concerns over the environmental impact of renewable energy expansion, particularly on critically endangered species like the Great Indian Bustard and raptors. The study highlighted that onshore wind farms are currently not mandated to undertake Environmental Impact Assessments (EIAs), leading to projects being set up in ecologically sensitive zones without proper study.

India's Samudrayaan Project Marks Deep Sea Breakthrough

Two Indian aquanauts, Cdr. Jatinder Pal Singh and Raju Ramesh, successfully completed India's maiden deep dive to nearly 5,000 meters in the North Atlantic Ocean aboard the French submersible Nautile on August 4 and 5, 2025. This mission is a preparatory step for India's indigenous Samudrayaan project, which aims to send three people to 6,000 meters in the indigenously built Matsya 6000 by December 2027. The aquanauts tested life-support functions, collected samples, and assessed emergency ascent procedures during their nearly 10-hour expedition, which included placing the Indian flag on the ocean floor.