25th August 2025 Daily Current Affairs

Major Headlines

1. Fitch Maintains India’s BBB– Rating

Fitch Ratings reaffirmed India’s long-term foreign-currency issuer default rating at BBB–, citing the country’s robust economic growth and resilient external finances. It maintained the GDP growth forecast at 6.5% for FY26, well above the BBB median of 2.5%. While domestic demand through government expenditure and private consumption remains strong, the rating agency highlighted moderate private investment due to external risks—particularly potential U.S. tariffs—that could impact gains from global supply chains. At the same time, planned reforms in Goods and Services Tax (GST) could help mitigate such risks.

2. India’s External Affairs Minister Stresses Supply Chain Diversification

At the ET World Leadership Forum 2025, External Affairs Minister S. Jaishankar emphasized the critical need for India to diversify its supply chains and markets. He noted that overreliance on a single market or supply source poses significant risks, advocating diversification as a strategic defense against potential disruptions.

3. India Accelerates Dam Project in Response to China’s Mega Dam

China has embarked on the construction of the world’s largest hydropower dam in Tibet along the Brahmaputra (Yarlung Zangbo). Indian authorities fear downstream water flow could drop by up to 85% during the dry season, prompting India to fast-track its own Upper Siang Multipurpose Storage Dam. While offering strategic flood control and water storage benefits, the Indian project has sparked local resistance in Arunachal Pradesh over displacement risks, with both dams being in highly seismic zones

4. US–India Trade Talks Postponed Amid Tariff Tensions

Scheduled trade negotiations between India and the U.S. (August 25–29 in Delhi) have been postponed. This disruption comes amid escalating tensions: the U.S. is set to impose a new 25% tariff, bringing total tariffs on Indian goods to 50%, driven by India’s ongoing Russian oil imports. India strongly protests the move, calling it selective and unfair.

Summary Table of Key Developments