5th September 2025 Daily Current Affairs

Economic & Financial Highlights

• Rising Bond Yields Raise Borrowing Costs
  Finance Minister Nirmala Sitharaman cautioned that surging yields on India’s 10-year government bonds—up by 19 basis points to reach 6.4651% in August—are making government borrowing more expensive, even as the Reserve Bank of India holds the repo rate steady at 5.50%. Despite an estimated ₹48,000 crore (~$5.5 billion) revenue shortfall due to recent tax cuts, she affirmed that the 4.4% fiscal deficit target will be met without cutting the ₹11.21 trillion infrastructure budget. The planned divestment of IDBI Bank is also expected to conclude within the fiscal year

• Rupee Plummets to Record Low—RBI Steps In
  The Indian rupee weakened to a historic low of ₹88.36 against the U.S. dollar, triggered by anxieties over fresh U.S. tariffs and persistent foreign outflows. The RBI intervened by offloading dollars through state-run banks to prevent further falls.

• Markets Rally on Tax Reforms & Fed Rate-Watch
  Indian equity benchmarks opened higher, bolstered by sweeping tax cuts and favorable U.S. Federal Reserve rate-cut expectations. While gains came especially from auto and consumer sectors, energy stocks lagged.
  However, market volatility persisted, with the BSE Sensex closing flat and staying above 80,700, as gains in certain sectors were countered by losses in others like IT and FMCG

Tax & Consumer Policy

• GST Overhaul Under Vigilant Watch
  Following the massive GST revision impacting nearly 400 items—effective from 22 September—the government has announced active monitoring to ensure the benefits of lower taxes reach consumers and to deter profiteering

Social Observance & Education

• Teachers’ Day Celebrated Nationwide
  Nations commemorate 5 September as Teachers’ Day in honor of Dr. Sarvepalli Radhakrishnan. He was a respected philosopher, Bharat Ratna recipient, and nominee for Nobel Prizes in both Literature and Peace.

• Schools Shut Due to Monsoon and Celebrations
  Several Indian states declared school closures on 5 September, driven by severe monsoon-induced disruptions and the observance of regional festivals.

Snapshot Table