6th August 2025 Daily Current Affairs

🌐 International Affairs & Strategic Diplomacy

• India pushes back against U.S.–EU pressure on Russian oil: MEA sharply criticized new tariffs and sanctions as “unjustified and unreasonable,” highlighting Western countries’ continued trade with Russia including LNG and nuclear fuel purchases, asserting India’s right to protect its energy security

• U.S. escalates trade tensions: President Trump signed an executive order imposing an additional 25% tariff on U.S. imports from India—raising the overall tariff to 50%. The move targets Indian exports linked to Russian oil and takes effect 21 days from August 6, affecting key sectors like textiles, gems & jewellery, footwear, and marine products

🏦 Economy & Financial Markets

• RBI holds repo rate at 5.50%, unanimously retaining a neutral tone. Despite inflation cooling to 2.10% in June, concerns over global trade uncertainties and U.S. tariffs influenced the decision. Analysts suggest this could mark the end of the current rate easing cycle

• Indian shares dip: Market indices fell following the RBI announcement, as rate-sensitive stocks and tariff concerns weighed on investor sentiment

• Foreign exchange reserves drop: RBI reserves declined by about US $9.3 billion, likely used to support the rupee amidst heavy tariff-driven pressure. The rupee had its steepest weekly decline in nearly three years

📉 Trade & Export Impact

• India anticipates export losses: Government estimates indicate a potential loss of competitive edge on approximately US $64 billion worth of U.S.-bound exports, mainly affecting sectors that accounted for ~80% of trade in 2024. Estimated GDP impact may be 0.2–0.5 percentage points for FY26

🌍 Strategic Shifts

• PM Modi’s China visit announced for the Shanghai Cooperation Organisation (SCO) summit, marking his first in over seven years. The visit is seen as part of India’s broader recalibration of geopolitical alignments amid rising U.S. tensions

• India–Philippines strategic partnership deepens: As part of President Marcos Jr.’s visit, both nations elevated ties to a strategic partnership, signing agreements across defence, maritime, space, and Coast Guard cooperation, including the first joint naval exercise in the West Philippine Sea

⚙️ Energy & Environment

• Fuel demand dips: India’s July fuel consumption declined 4.3% month-on-month to ~19.43 million tonnes. Diesel demand fell 9%, petrol dipped slightly, while LPG sales rose over 10%

##🎓 UPSC & Governance Developments

• PAHAL LPG DBT clean‑up: Over 4 crore inactive or duplicate LPG connections have been terminated under the PAHAL subsidy scheme, improving targeting efficiency

• Electric Mobility Index (IEMI) by NITI Aayog released: Delhi, Maharashtra, and Chandigarh lead as ‘frontrunners’ in EV ecosystem development, while several states like UP and Rajasthan remain lagging

📌 Summary Table