Daily Current Affairs Quiz8 March, 2025 International Affairs 1. India-China Relations Context: Chinese Foreign Minister Wang Yi emphasized the need for India and China to support rather than undermine each other, likening their relationship to a ballet between the elephant and the dragon. He acknowledged positive strides in bilateral ties following the resolution of the Eastern Ladakh military stand-off. Key Diplomatic Developments China’s Position on Border Disputes A Unified Global South Against Hegemony 2. U.S.-Iran Nuclear Tensions Context: U.S. President Donald Trump has written to Iran’s Supreme Leader Ayatollah Ali Khamenei, urging negotiations to prevent nuclear weapon development. Warned that military action is an option if Iran refuses to negotiate. Shift in approach from his hardline first-term stance, which could create tensions with Israel, a key U.S. ally. Iran’s Response Background: JCPOA & U.S.-Iran Relations Geopolitical Implications Way Forward Trump’s outreach signals a possible diplomatic opening, but Iran remains firm on not engaging under pressure. The situation remains delicate, with military confrontation still a possibility. 3. U.S.-India Free Trade Agreement (FTA) Context: U.S. Secretary of Commerce Howard Lutnick emphasized the need for a broad-based FTA instead of a product-by-product trade deal, which could take years. Urged India to lower tariffs across the board in exchange for greater trade opportunities with the U.S. Key Highlights from Lutnick’s Address Background & Current Negotiations Implications This development signals a high-stakes trade discussion, with India balancing strategic economic interests while seeking trade concessions from the U.S. National Affairs 1. Duplicate Voter ID Issue Context: Background of the Controversy EC’s Response and Explanation Appeal Process for Affected Voters Key Questions Raised The EC’s initiative to assign a unique national EPIC number is a crucial step toward electoral transparency. However, the delay in addressing the issue has led to political backlash, raising concerns about electoral integrity and voter list management. 2. Deciphering the Indus Valley Script The recent claim by cryptographer Yajnadevam (Bharath Rao) regarding the successful decipherment of the Indus Valley script is a groundbreaking development in linguistics, archaeology, and historical narratives. His methodology—using cryptographic techniques based on Claude Shannon’s information theory—offers a fresh approach to a puzzle that has eluded scholars for decades. This decipherment, if validated, could fundamentally alter our understanding of the Indus Valley Civilization (IVC), its linguistic heritage, and its connection to later Indian history. Methodological Breakthrough in Decipherment Why Previous Attempts Failed Cryptographic Approach to Decipherment Establishing Sanskrit as the Indus Script’s Language Historical Implications of Decipherment Impact on the Aryan Invasion Theory Rethinking the North-South Divide Confirming the Maritime & Economic Power of the IVC Challenges & Skepticism in the Academic Community While Rao’s findings are highly significant, they will inevitably face rigorous academic scrutiny. Some key challenges include: Despite these challenges, if Rao’s decipherment holds up under peer review, it could revolutionize Indian history, linguistic studies, and cultural identity. A Paradigm Shift in Understanding the Indus Valley Civilization The potential decipherment of the Indus script in Sanskrit challenges long-standing historical narratives about India’s linguistic and cultural evolution. If validated, it could: While more validation is needed, this breakthrough offers an exciting avenue for rewriting ancient history with new, data-driven insights. Source: TOI 3. India’s Defence Deals Context: India has recently undertaken major defence upgrades across its Army, Air Force, and Navy, reinforcing its military capabilities amid regional security challenges. Army Strengthens T-72 Tank Fleet with Russian Engines IAF’s C-17 Globemaster Lands at Kargil for the First Time Indian Navy Wraps Up Major Combat Exercise in Indian Ocean As India faces evolving security challenges, these measures reinforce its strategic deterrence and operational preparedness. Source: TOI Banking/Finance 1. SEBI’s New Chairperson Prioritizes “Optimum Regulation” Context: SEBI’s new chairperson, Tuhin Kanta Pandey, emphasized the need to remove outdated and redundant regulations. Stressed that capital markets are dynamic, requiring adaptive and efficient regulation. SEBI will focus on “optimum regulation” rather than maximum regulation. Background Key Themes in SEBI’s Approach A. Governance & Ethical Standards B. Shift Towards Balanced Regulation C. Market Accessibility & Investor Confidence D. Technology & Financial Inclusion Potential Impact on the Financial Ecosystem For Investors For Corporations & Market Participants For the Indian Capital Markets Way Forward Pandey’s vision for SEBI marks a departure from excessive regulation towards a more dynamic and market-responsive approach. By focusing on governance, investor awareness, financial inclusion, and a balanced regulatory framework, SEBI aims to create an efficient, transparent, and resilient capital market that can sustain India’s economic growth. Source: Mint, BS 2. RBI’s Gold Reserves Context: The Reserve Bank of India (RBI) has been aggressively increasing its gold reserves since 2020, making it the second-largest buyer globally after China. This shift signals a deeper strategic and economic intent beyond mere diversification. Key Highlights: India is the second-largest gold buyer (post-2020), trailing only China. Total gold added (2020-2024): In Q4 2024: As of Jan 31, 2025, India’s gold reserves stand at 879 tonnes after adding 3 tonnes in 2025. Key Reasons Behind RBI’s Gold Accumulation Potential Implications of This Strategy The RBI’s continued gold accumulation is a strategic response to geopolitical risks, economic volatility, and changing global financial dynamics. While India officially maintains that it has no de-dollarization agenda, the steady increase in gold reserves points to a long-term strategy of diversification, risk mitigation, and financial autonomy. 3. Nestlé India Receives SEBI Warning Over Insider Trading Breach Context: SEBI has issued a warning to Nestlé India for a breach of insider trading regulations by a designated person of the company. Key Highlights: This incident underscores SEBI’s strict enforcement of insider trading laws, reinforcing the need for corporate transparency and compliance. 4. RBI’s VRR Auctions Signal Easing Liquidity Tightness Context: Recent variable rate repo (VRR) auctions by the Reserve Bank of India (RBI) have seen subdued demand, signaling a significant shift in banking system liquidity. This trend suggests that the central bank’s recent measures to inject liquidity are beginning to take effect, potentially altering its policy stance in the near term. Falling Demand for VRR Despite offering substantial funds, banks have shown reduced appetite