5th August 2025 Daily Current Affairs

🌐 International Trade & Economy

• Donald Trump again escalates tariff pressure, warning India of a rise in import duties from 25% to “very substantially” within 24 hours, citing India’s ongoing Russian oil imports

• On August 6, Trump issued an executive order imposing an additional 25% tariff—taking the total U.S. tariff on Indian goods to 50%, effective 21 days later—widely seen as a major blow to India’s export competitiveness

• India rejects the tariff escalation as “unjustified,” while analysts warn sectors like gems, textiles, and pharmaceuticals may face a GDP hit of 0.3%–0.5% if the additional duty is enforced

• Equity markets weighed down: Nifty50 closed at 24,650 and Sensex slipped over 300 points, with investors spooked ahead of RBI’s impending monetary policy outcome

• The Indian rupee opened weaker at approx. ₹87.85/USD, avoiding record lows only due to rumored RBI intervention in forex markets before open

🏦 RBI & Financial Outlook

• During the ongoing RBI Monetary Policy Committee meeting (Aug 4–6), the central bank held the repo rate at 5.50%, citing risks from global trade tensions and subdued inflation, while maintaining a neutral stance

• Meanwhile, corporate earnings remain subdued, with poor performance across banking and IT sectors putting further pressure on market sentiment

⚠️ Disaster & Environment

• A cloudburst-triggered flash flood in Uttarkashi, Uttarakhand on August 5 claimed at least five lives, left over 50 people missing, and destroyed homes and hotels in Dharali village. Rescue efforts are underway with involvement from Army, NDRF, and SDRF teams, and around 190 people have been evacuated

🧾 Governance & Public Policy

• Prime Minister Modi inaugurated Kartavya Bhawan‑3 in New Delhi, the first building under the Common Central Secretariat complex on Kartavya Path—part of the Central Vista redevelopment project

• PM and state leaders paid tributes to former Jharkhand CM Shibu Soren, who passed away on August 2 at age 81. In other political news, the Supreme Court criticized Rahul Gandhi over remarks concerning China, intensifying polarised discourse ahead of elections

🧑‍🎓 UPSC Themes & Analytical Insights

• UPSC GS‑Paper 3:

  • India’s pesticide market shows rapid growth in herbicides, driven by labour shortages and mechanised farming (₹24,500 crore market; herbicides ₹8,200 crore)

  • Ethanol Blending (E20 petrol) rollout surpassed targets; policy-makers weigh engine reliability and public awareness issues

  • Above-normal monsoon rainfall forecast for second half of season (≥ 106% of LPA), attributed to MJO activity, ENSO neutrality, and adequate land‑sea temperature contrast—beneficial for agriculture, hydropower, and groundwater recharge

• UPSC GS‑Paper 2: India launched its first India‑Philippines naval exercise in the West Philippine Sea on August 4, reflecting strategic maritime cooperation under Indo‑Pacific alignmentFacts & One-liners:

  • India Electric Mobility Index (IEMI) launched by NITI Aayog.

  • UPI daily transactions crossed 700 million for the first time.

  • Former Governor Satyapal Malik, 79, passed away.

  • Chess Esports World Cup won by Magnus Carlsen

📌 Summary Table