02.08.25 Current Affairs

ONE LINER CURRENT AFFAIRS

National Affairs

• Election Commission announced the date for the 17th Vice-Presidential Election as per Articles 66–68 of the Constitution.
• India launched the UN-India Global Capacity Building Initiative to share its developmental expertise with Asia, Africa, and the Caribbean.
• India Post Payments Bank introduced Aadhaar-based face authentication to promote inclusive banking.
• UPI new operational rules by NPCI came into effect, regulating account linking, auto-payments, and balance inquiries.
• PM National Dialysis Programme expanded to increase renal care access across districts.
• Himachal Pradesh’s ban on private construction in green areas upheld by the Supreme Court.
• Odisha launched a roadmap to integrate Landraces into formal seed systems to preserve biodiversity.
• National Film Awards 2023 announced: 12th Fail (Best Feature Film), Giddh (Best Short), Rani Mukerji and Shah Rukh Khan among winners.
• IEPFA to launch a unified portal for claim management and investor services under MCA.
• Apna Ghar Initiative launched for providing accommodation to migrant workers and the poor.

International Relations

• India–U.S. trade relations strained after the U.S. imposed 25% tariffs on Indian exports, citing India’s ties with Russia.
• India defended its strategic autonomy and participation in BRICS as complementary to QUAD engagements.
• U.S. tariffs impact key Indian sectors like textiles, telecom, autos, and agri-exports.
• India criticized the U.S.–Pakistan oil agreement, calling it a strategic contradiction.
• The episode reflects rising mistrust, with analysts citing a revival of the India–U.S. Cold War mindset.
• India reiterated its non-alignment and multipolarity stance as fundamental to foreign policy.
• Global cooperation is needed to protect plastic trade regulations, as discussed in ongoing UN Plastic Treaty negotiations in Geneva.
• ICJ advisory opinion reaffirmed the Kyoto Protocol’s validity, supporting developing countries’ legal climate claims.
• India continues to build strategic linkages with countries in the Global South through SDG-aligned capacity-building efforts.
• India aligns with EU environmental norms through cooperation on plastics and climate litigation.

Environment and Climate

• ICJ ruling revived the legal authority of the Kyoto Protocol despite Paris Agreement dominance.
• Kyoto Protocol obligations—emission cuts, CDM, and finance—remain enforceable under international law.
• India must re-engage with CBDR–RC (Common but Differentiated Responsibilities) principles.
• UNCTAD Global Trade Update called for sectoral reforms to tackle global plastic pollution.
• Only 10% of plastic is recycled; over 75% becomes waste; 78% is traded globally.
• SC said revenue must not override ecological protection—highlighting Himachal Pradesh’s fragile ecology.
• Plastic alternatives (bamboo, paper) face higher tariffs (~14.4%) than plastics (~7.2%).
• Supreme Court recognized glacial retreat, slope instability, and illegal mining in the Himalayan region.
• India’s PWM Rules (2016, 2021, 2022, 2024) target SUP ban, EPR, and urban-local body responsibilities.
• Study by Bose Institute confirmed toxic metals (Cd, Zn, Cu, Cr) in clouds over Western Ghats and Eastern Himalayas.

Science and Technology

• A study by the Bose Institute revealed toxic pollution in mountain clouds, dispelling the “clean mountain rain” myth.
• Contaminants like cadmium, chromium, and zinc are linked to vehicle emissions and industrial activity in the foothills.
• Children are at 30% higher risk of metal toxicity in the Himalayan and Western Ghats clouds.
• India Post Payments Bank adopted facial recognition for Aadhaar-linked banking transactions.
• 26 major companies, including Google and Microsoft, signed the EU AI Code of Practice on GPAI.
• The voluntary code aligns with the EU AI Act, expected to be globally influential like GDPR.
• The AI Code of Practice focuses on transparency, copyright compliance, and safety.
• Companies expressed concerns over legal uncertainties and competitiveness impacts due to regulatory burdens.
• The IndiaAI Mission aims to create a safe, inclusive, and innovative AI ecosystem in the country.
• India needs next-gen green technologies (e.g., perovskite solar cells) to address limitations in traditional PV tech and decarbonize logistics.

Governance and Public Policy

• Supreme Court ruling reinforced the need for ecological protection over private infrastructure gains in hill states.
• Emphasis on monitoring and diversion checks for green tax funds in eco-sensitive districts.
• Legislative disconnects are cited between municipal laws and waste management rules in hilly regions.
• Removal of forest guards worsened illegal logging and environmental degradation in Himachal.
• Calls for involving local voices and expert opinions in planning hill development projects.
• Enforcement of PWM Rules and linking them with the Basel, Rotterdam, Stockholm (BRS) Conventions is suggested.
• UPI operational rule changes signify tightening of fintech regulations and service delivery.
• Unified platform for IEPFA marks digital integration in investor protection.
• India’s mission with the UN supports knowledge transfer as soft power in global governance.
• The revised VP election protocols ensure transparent democratic functioning and legal compliance.

Economy and Finance

• U.S. tariffs (25–38%) on Indian exports disrupt competitiveness and MSME growth.
• Sectors like textiles, leather, gems, and electronics are most affected by rising tariffs.
• Global plastic trade rose sharply, yet green alternatives remain underfunded and tariff-disadvantaged.
• India’s trade surplus with the U.S. may shrink, reducing foreign exchange inflow.
• The Kyoto Protocol revival could pressure developed countries for climate financing.
• New IEPFA portal streamlines refunds of unclaimed shares, deposits, and dividends to investors.
• IPPB’s facial authentication reduces dependence on OTP-based transactions—improving digital banking efficiency.
• Plastic tax reforms proposed in the UNCTAD update aim at economic instruments for pollution control.
• EPR compliance rules for plastic packaging could stimulate the domestic waste economy and start-up sector.
• Fear of FDI decline in tariff-hit Indian export sectors highlighted by trade analysts.

Social and Cultural Issues

• Himachal Pradesh’s urbanization and tourism are increasing ecological and social vulnerabilities.
• Construction bans on green lands affect informal workers dependent on construction.
• The PM National Dialysis Programme enhances rural access to renal healthcare.
• Election Commission guidelines for VP polls ensure clean and fair elections, boosting voter trust.
• Awareness and access to Aadhaar-linked digital services improve through IPPB’s facial verification.
• Odisha’s promotion of traditional seed varieties (Landraces) supports community-centric agriculture.
• National Film Awards recognized movies like 12th Fail that highlight social justice and youth struggles.
• Toxic clouds carry health risks, especially for children and pregnant women in high-altitude areas.
• Plastic pollution disproportionately impacts small island and low-income developing countries.
• IEPFA initiatives improve financial literacy and investor empowerment, especially for the elderly.

Defence and Strategic Affairs

• India reaffirmed strategic autonomy amidst U.S. pressure on defence and oil imports from Russia.
• U.S. cited India’s S-400 deals and Russian crude purchases to justify tariffs under CAATSA logic.
• Tariff tensions signal shift from strategic altruism to transactionalism in India–U.S. ties.
• Declining trust affects defence tech transfer and supply chain cooperation.
• India’s presence in BRICS and SCO is seen by the U.S. as contradictory to QUAD commitments.
• Strategic use of green hydrogen and AI regulation critical for defence modernization.
• Mountain pollution studies relevant for soldier health and operational planning in high-altitude areas.
• Plastic and e-waste regulations linked to military logistics and sustainability.
• India’s participation in international climate litigation reflects the defence of Global South interests.
• The Kyoto Protocol revival strengthens legal frameworks that India can leverage in global forums.

Art and Culture

• 71st National Film Awards highlighted the intersection of cinema and national identity.
• 12th Fail won Best Feature Film for portraying social mobility and determination.
• Shah Rukh Khan (Jawan) and Rani Mukerji (Mrs. Chatterjee vs Norway) received acting honors.
• Giddh – The Scavenger won Best Short Film for documenting marginal communities.
• Cultural continuity reinforced by films focusing on rural India, diaspora struggles, and social reform.
• The awards promote recognition for regional cinema and short-form storytelling.
• Flowering Man won Best Non-Feature Film for its documentary style.
• Film awards act as indicators of cultural trends, national values, and state support for the arts.
• They also strengthen India’s soft power diplomacy through global recognition of talent.
• Awards by the President of India enhance the institutional legitimacy of cultural governance.

Infrastructure

• SC flagged reckless hydropower expansion in Himachal, damaging aquatic ecosystems.
• Unregulated tourism infrastructure, like roads and private hotels on unstable slopes, worsens disasters.
• India Post is expanding its doorstep digital banking infrastructure through IPPB’s face authentication system.
• Unified IEPFA portal modernizes financial claim infrastructure.
• UPI rule changes require upgraded banking IT systems for security and data access.
• Odisha’s support for landraces includes seed storage and agro-processing infra.
• Green tax funds often diverted—SC demanded accountability in eco-infrastructure projects.
• Poor integration of waste management infrastructure with municipal governance in hilly states noted.
• Study recommends decentralized solid waste management units in Himalayan towns.
• SC ruling may influence future planning norms in hill infrastructure.

Geography

• Toxic metal-laced clouds found over Western Ghats and Eastern Himalayas.
• Study showed 1.5× higher pollution in Eastern Himalayas vs Western Ghats.
• Bara Shigri glacier in Lahaul–Spiti shrank by 2–2.5 km due to warming.
• River Sutlej reduced to a rivulet due to hydro projects.
• Erosion-prone slopes in Mandi, Kullu, and Shimla pose disaster risks.
• Landraces adapted to local agro-climatic zones in Odisha, like the KBK districts.
• Geneva hosted ongoing UN Plastic Treaty negotiations, linking geography with diplomacy.
• Regions facing the highest waste impact include small island and coastal countries.
• National Mission for Himalayan Ecosystem covers fragile zones from Kashmir to Arunachal.
• SC discussed slope instability and anthropogenic stress in Himachal’s mid-altitude regions.

Places in the News

• Shimla, Kullu, Mandi (HP) – landslides and unplanned urbanization under SC scrutiny.
• Lahaul–Spiti – glacier retreat highlights climate vulnerability.
• Western Ghats, Eastern Himalayas – cloud pollution with toxic heavy metals.
• Odisha – launched landrace integration roadmap.
• Geneva (Switzerland) – venue of UN Plastic Treaty talks.
• India Post’s IPPB services extend to rural and remote areas.
• New Delhi – venue for VP elections and IEPFA’s digital reforms.
• Kolkata – Bose Institute’s atmospheric pollution research base.
• U.S.–India trade tensions affect ports like Mumbai, Chennai, key for textile exports.
• Himachal Pradesh – eco-sensitive zones now protected under new SC orders.

History and Heritage

• Odisha’s focus on landraces preserves agricultural heritage and indigenous farming practices.
• National Film Awards honor stories rooted in India’s social and historical consciousness.
• SC’s support for natural heritage and fragile ecosystems aligns with historical ecological knowledge.
• The Kyoto Protocol revival connects to the evolution of global environmental treaties since 1997.
• Traditional seed diversity is under threat from modern chemical-intensive agriculture.
• National awards show the evolution of Indian cinema from colonial mimicry to indigenous storytelling.
• India’s multipolarity rhetoric is linked to the post-colonial non-alignment legacy.
• IPPB revives the legacy of the Indian Postal System, central to modern state-building.
• India’s legal arguments in the ICJ echo historic equity demands in North–South negotiations.
• Films like 12th Fail reflect the continuity of the Gandhian ethos of perseverance and simplicity.

Potential impact of the 25% U.S. Tariff

Context: Indian textile and engineering exporters are alarmed by the potential impact of the 25% U.S. tariff, fearing major order losses due to heavy dependence on the American market and a lack of alternative high-volume buyers.

Key Highlights:

• High Dependence on U.S. Market: 60–70% of textile exports (like garments, bed linen) go to the U.S., with no equivalent alternative markets.
• Immediate Impact: U.S. buyers delaying/cancelling orders or asking Indian suppliers to absorb tariff costs.
• Engineering Exports at Risk: U.S. is a key market for Indian engineering goods; competing countries enjoy lower tariffs.
• Lack of Alternatives: Exporters say other markets already explored do not offer comparable volume potential.
• Demands from Exporters:
  • Reintroduce interest subvention scheme (due to 8.5–9% bank interest in India).
  • Moratorium on loan repayments to improve financial resilience.
  • Detailed impact study on product categories affected by the tariff.
• Government Engagement: Commerce Minister Piyush Goyal met exporters to assess challenges and possible support measures.

Day Ahead Market (DAM)

Context: The CERC’s plan to introduce market coupling in the Day Ahead Market (DAM) from January 2026 is being criticized by industry experts, who say pilot studies show negligible benefits and the idea lacks practical justification.

Key Highlights:

• Marginal Gains from Pilot:
  • Shadow pilot by Grid-India showed only 0.3% rise in welfare and 0.2% in volume for DAM; Real-Time Market (RTM) showed just 0.01% improvement.
• Theoretical Social Welfare Benefit: Claimed ₹38 crore increase in social welfare is algorithm-based, not real consumer savings.
• Concerns About Complexity: Centralized coupling mechanism may delay operations, add redundancy, and not address key market challenges like liquidity and investor confidence.
• Design Issues: Proposed structure is closer to exchange coupling, with no global precedent for such a model.
• CERC’s Oversight: Final order reportedly doesn’t reflect full findings of the Grid-India pilot report.
• Timeline Doubts: Implementation by January 2026 seen as unrealistic due to absence of sensitivity/robustness analysis.