Daily Current Affairs Quiz10 April, 2025 International Affairs 1. Global Trade War Escalates as China, EU Hit Back at Trump’s Tariffs Context: The global trade war intensified, as China and the European Union imposed new tariffs on US goods in retaliation to President Donald Trump’s sweeping 104% tariffs on Chinese imports, further destabilizing global markets and increasing the risk of a global recession. Key Developments: China Retaliates with Massive Tariff Hike European Union Responds Market Reaction & Economic Fallout Economic Risks & Consumer Impact US Trade Strategy and Diplomacy Trade Balance Trends (Goods Only, in $ billion): With China: Year Exports Imports Trade Balance Deficit Share (%) 2018 120.3 538.5 -418.2 48.1 2023 147.8 426.9 -279.1 26.3 2025* 20.4 73.3 -52.9 17.5 With EU: Year Exports Imports Trade Balance Deficit Share (%) 2018 318.5 486.9 -168.4 19.3 2023 367.6 576.3 -208.7 19.6 2025 60.0 108.7 -48.7 16.1 Jan–Feb dataSource: US Census Bureau, compiled by BS Research Bureau Political Outlook The global trade landscape is undergoing a dramatic shift, with retaliatory tariffs disrupting decades-old trade norms. While the US signals readiness to negotiate with allies, it remains locked in an escalating standoff with China and the EU, triggering widespread market uncertainty, recession fears, and inflation concerns. BS 2. Trump Announces 90-Day Global Tariff Pause, Escalates Trade War with China 90-Day Tariff Pause for Most Countries Sharp Escalation Against China China’s Retaliatory Measures Global Market Reaction TH National Affairs 1. India Approves ₹63,000 Crore Rafale-M Deal for Navy Operations Context: The Cabinet Committee on Security (CCS), chaired by Prime Minister Narendra Modi, approved the purchase of 26 Rafale-Marine fighter jets from France. The deal, valued at nearly ₹63,000 crore, is aimed at bolstering the Indian Navy’s carrier-based fighter fleet. This is India’s largest-ever naval fighter acquisition. Deal Composition and Timeline Complementing Existing Capabilities Background and Strategic Significance Submarine Deal Still Pending The Rafale-M deal represents a major leap in India’s maritime air power. Once finalized, it will significantly enhance the Navy’s ability to project force across strategic waters, aligning with India’s long-term defense and security objectives. TH 2. Federalism and Constitutional Accountability Context of the Judgment Supreme Court’s Key Findings Strengthening Federal Governance Immediate Consequences for Tamil Nadu Broader National Significance The Supreme Court’s decision is not just a judicial critique of a Governor’s overreach—it is a call to preserve the sanctity of India’s federal democracy. It demands that Governors uphold the spirit of the Constitution and reinforces the principle that State autonomy must be respected within the Union framework. TH 3. New Aadhaar Law Aligned with Digital Personal Data Protection Act, 2023 Context: Background: Aadhaar and Privacy Law Evolution Objectives of the Proposed Aadhaar Law Update DPDP Act Highlights Next Steps Significance TET 4. Cabinet Approves ₹1,600 Crore M-CADWM Scheme to Boost Irrigation Infrastructure Scheme Overview Primary Objectives Key Features Implementation Model Expected Outcomes TH 5. Palna Scheme Context: Objectives of the Palna Scheme Funding Structure Region Centre’s Share State/UT Share General States 60% 40% NE & Special Category States 90% 10% UTs with Legislature 60% 40% UTs without Legislature 100% 0% Integrated Package of Services In convergence with Mission Poshan 2.0, Palna offers: Types of Crèches Crèche Infrastructure & Implementation Worker Honorarium Structure Type of Crèche Creche Worker Creche Helper Standalone ₹6,500 ₹3,250 AWCC ₹5,500 ₹3,000 Note: States/UTs may top-up these honoraria from their own budgets. Progress & Coverage (as of March 2025) Financial Allocation & Disbursement Financial Year Allocated (Cr) Released (Cr) 2022-23 ₹35 ₹4.68 2023-24 ₹85 ₹64.15 2024-25 ₹150.11 ₹43.66* As of December 19, 2024 Legislative & Inter-Ministerial Support PIB Science & Tech 1. Japan Built the World’s First 3D-Printed Train Station Context: In a global first, West Japan Railway Company (JR West) constructed a 3D-printed train station in just six hours, revolutionizing rural infrastructure development. The new station, named Hatsushima, replaces a traditional wooden building that served the area for over 75 years. Why It Matters Construction Highlights Future Use and Implications The Indian Express Banking/Finance 1. RBI’s Monetary Policy Committee (MPC) Meeting April 2025 Context: The Reserve Bank of India (RBI) cut the repo rate by 25 basis points, bringing it to 6%, marking the second consecutive rate cut in 2025. The policy stance has shifted to “accommodative”, signaling room for further easing to support economic growth. GDP and Inflation Forecasts Revised Quick Rate Transmission in Focus Sectoral Impact: Real Estate and Auto Eye Revival RBI Moves to Regulate Gold-Backed Loans Market Response: Bond Yields Tumble Stability Assurance: IndusInd Incident Clarified The RBI’s April 2025 policy review reinforces its pivot toward growth, with calibrated rate cuts and improved inflation control. While challenges remain, especially from global uncertainties, the central bank’s approach balances monetary easing with financial prudence. Key sectors now await faster rate transmission to reignite domestic demand and credit flow in the months ahead. 2. RBI Governor Reassures Resilience of India’s Financial System Context: Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized that recent banking irregularities — including incidents at IndusInd Bank and New India Cooperative Bank should not be seen as systemic failures, but as isolated episodes within a broad and robust financial ecosystem. Highlights from the Post-Policy Press Conference Incidents Are Isolated, Not Failures Financial System Remains Resilient IndusInd Bank Derivative Discrepancy New India Cooperative Bank Governance Concerns Regulatory Tools in Place While isolated disruptions may occur, the overall financial system in India is fundamentally resilient, with proactive steps from the RBI to mitigate risks and safeguard consumer interests. BS 3. RBI Draft Guidelines Aim to Harmonize Gold Loan Practices Across Financial Entities Context: The Reserve Bank of India (RBI) released draft guidelines to regulate and harmonize gold loan practices across banks and non-banking financial companies (NBFCs). The proposed norms introduce a uniform 75% loan-to-value (LTV) cap, emphasize risk control measures, and aim to improve transparency in lending operations. Market Impact Following the announcement, gold loan NBFC stocks reacted negatively: Key Provisions in the Draft Guidelines: LTV Ratio Capped at 75% Prohibited Collateral Types Risk & Credit Policy Requirements Portfolio Ceiling