Daily Current Affairs Quiz
31 July, 2025
National Affairs
1. U.S. Announces 25% Tariff on Indian Imports
Context:
On July 30, 2025, the U.S. President announced a 25% tariff on Indian imports effective August 1, 2025, citing high trade barriers and India’s continued energy and defence relations with Russia. The measure is linked to the proposed Russia Sanctions Act 2025.
What Is the Announcement?
- A 25% import tariff imposed on eligible goods imported from India.
- Includes additional penalty tariffs on account of India’s trade with Russia—particularly in oil and defence.
Objectives Behind the Tariff
- Correct Trade Imbalance
- Pressure India to lower tariff and non-tariff barriers in trade with the U.S.
- Penalize Russia-Aligned Trade
- Target India’s oil and defence purchases from Russia amid ongoing Ukraine-related sanctions.
- Expedite a Bilateral Trade Agreement
- Push India toward a “fair and reciprocal” trade deal with the U.S.
Key Features of the Announcement
- Trade War Language:
- U.S. President accused India of “obnoxious trade practices” and opaque regulatory policies.
- Linked to Russia Sanctions Act 2025:
- The proposed law allows up to 500% tariffs on countries continuing energy trade with Russia.
- Triggered by Diplomatic Failure:
- Follows fifth failed round of India–U.S. trade negotiations held in Washington.
- Tariff Revival:
- Reinstates and amplifies a previously suspended 26% tariff (April 2025) in a harsher form.
Strategic and Economic Significance for India
- Smartphones: Apple’s iPhone exports from India may see cost hikes or delays, threatening India’s gains under the PLI scheme and the “China Plus One” strategy.
- Pharmaceuticals: Tariffs may worsen US drug shortages and raise prices, as India supplies a significant share of generic drugs.
- Textiles and Apparel: Higher tariffs could shift orders to Vietnam or Bangladesh, risking job losses in India’s labour-intensive sector.
- Jewellery: Already under 27% duty, an additional 25% would squeeze margins drastically.
- Auto Parts: Shipments to the US will face full 25% duty, hitting the engineering goods sector.
- Shrimp & Seafood: Loss of price competitiveness against Latin America, affecting a sector already under scrutiny by the US for high Indian tariffs on agri goods.
2. Sawalkote Hydroelectric Project on Chenab River
Context:
India has formally invited international tenders for the construction of the long-delayed 1,856 MW Sawalkote hydroelectric project on the Chenab River in Jammu & Kashmir, following its decision to keep the Indus Waters Treaty (IWT) with Pakistan in abeyance. This marks a strategic shift in India’s use of its entitlements under the IWT, aimed at maximizing the utilisation of western river waters.
Key Highlights:
- About the Project:
- Name: Sawalkote Hydroelectric Project
- Location: Ramban district, Jammu & Kashmir
- Type: Run-of-river hydroelectric project
- Capacity: 1,856 MW
- Estimated Cost: ₹22,705 crore
- Executing Agency: NHPC
- Strategic Significance:
- The move aligns with India’s broader strategy to assert greater rights over western rivers (Chenab, Jhelum, Indus) under IWT provisions.
- Pakistan had long objected to the project, delaying it under the treaty’s dispute resolution mechanisms.
- Historical Background:
- Conceived in the 1980s; shelved and revived multiple times.
- Attempts to revive in 1996 with a Norwegian consortium failed.
- Faced hurdles related to forest clearance, compensation to 13 villages, and relocation of an Army camp.
- Project was completely shelved during Mufti Mohammad Sayeed’s tenure.
3. India Launches NASA–ISRO NISAR Satellite
Context:
India successfully launched the NASA–ISRO Synthetic Aperture Radar (NISAR) satellite from the Satish Dhawan Space Centre, Sriharikota, on July 31, 2025, aboard the GSLV-F16 rocket. This marks the first collaborative Earth observation mission between ISRO and NASA and a major step in global climate and disaster monitoring.
What is NISAR?
- Full Form: NASA–ISRO Synthetic Aperture Radar
- Mission Type: Earth observation using dual-frequency synthetic aperture radar (SAR)
- Mission Duration: 5 years (2025–2030)
- Orbit: Sun-synchronous polar orbit at 747 km altitude
- Launch Vehicle: GSLV-F16 (first GSLV mission into polar orbit)
Mission Objectives
- Monitor minute land and ice surface changes at centimetre-level precision
- Detect and forecast natural disasters including earthquakes, floods, landslides, and volcanic activity
- Track changes in vegetation, wetlands, glaciers, and soil moisture
- Aid sectors like agriculture, infrastructure, water, and climate management
Technological Features
- Dual-frequency SAR capability:
- L-band (NASA) for deeper surface penetration
- S-band (ISRO) for higher-resolution imaging
- 242 km swath width with global revisit every 12 days
- All-weather, 24/7 imaging capability — works through clouds and darkness
- 12-metre deployable reflector antenna enables SweepSAR for wide-area monitoring
Contributions by NASA and ISRO
| Agency | Key Contributions |
|---|---|
| NASA | L-band radar, boom, reflector antenna, GPS, solid-state recorder, and telecom system |
| ISRO | S-band radar, satellite bus (I-3K), launch via GSLV-F16, solar arrays, data and ground systems |
4. India-UAE Deepen Defence and Maritime Cooperation
Context:
India and the United Arab Emirates (UAE) have agreed to strengthen their bilateral defence partnership, especially in maritime security, during the 13th Joint Defence Cooperation Committee (JDCC) meeting held on Wednesday. The decision marks a significant step forward in aligning defence cooperation with the growing strategic and economic relationship between the two nations.
Key Highlights:
- Defence Cooperation Initiatives:
- Agreement to enhance real-time maritime information sharing.
- Commitment to joint defence manufacturing initiatives.
- Military training cooperation to be intensified, with India offering customised training courses for the UAE armed forces.
- Maritime Security MoU:
- An MoU signed between Indian Coast Guard and UAE National Guard.
- Scope includes cooperation in:
- Search and Rescue (SAR)
- Marine pollution response
- Anti-piracy operations
- Other maritime security initiatives
- Recent Defence Sales Offer:
- In April 2025, India offered a range of defence equipment to UAE, including:
- Akash surface-to-air missile systems
- Helicopters and drones
- Subsonic cruise missiles
- Offer was made during the meeting between Defence Minister Rajnath Singh and Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.
- In April 2025, India offered a range of defence equipment to UAE, including:
5. Sanchar Mitra Scheme Launched to Promote Digital Awareness and Telecom Security
Context:
The Department of Telecommunications (DoT) has launched the Sanchar Mitra Scheme to engage India’s youth as active agents in promoting telecom awareness, digital safety, and responsible usage among communities across the country.
Key Features of the Sanchar Mitra Scheme
- Target Group:
- Open to students from technical institutes offering programs in telecom, electronics, computer science, cybersecurity, or related fields. Institutes must be registered and actively participating in the scheme.
- Objective:
To create a nationwide network of trained Sanchar Mitras who will:- Conduct community awareness drives on telecom services and digital safety.
- Educate the public on mobile security, prevention of telecom frauds, and responsible telecom behavior.
- Act as digital empowerment ambassadors within public spaces and educational institutions.
- Nationwide Rollout:
- The scheme is already being implemented at scale, with LSAs (Licensed Service Areas)—DoT’s field offices—coordinating outreach to eligible institutions.
Capacity Building and Exposure
- Sanchar Mitras will receive hands-on training in:
- Cybersecurity
- Telecom policies and regulations
- Emerging telecom technologies
- ITU standards and policy work
- They will also gain exposure to:
- R&D and innovation projects
- Technical conferences
- Industry collaborations and engagements
Vision
- The scheme aligns with India’s aim of becoming a telecom innovation and manufacturing hub, by nurturing a skilled, digitally aware youth workforce.
- It serves as a bridge between academia, industry, and society for telecom-centric public outreach.
6. Scheme for Women Cooperatives
Context:
The National Cooperative Development Corporation (NCDC) is actively supporting women’s empowerment through targeted cooperative development schemes. Two flagship schemes—Swayamshakti Sahakar Yojna and Nandini Sahakar—are designed to promote sustainable livelihood and entrepreneurship among women cooperatives.
Swayamshakti Sahakar Yojna
Objective:
- Facilitate affordable and reliable financial services to poor women.
- Enable Self Help Groups (SHGs) to access adequate bank credit for collective socio-economic activities.
- Promote sustainable livelihood through cooperative credit support.
Eligible Entities:
- Primary Agricultural Credit Societies (PACS)
- District Central Cooperative Banks (DCCBs)
- State Cooperative Banks (StCBs)
- Federated SHG Cooperatives and Cooperative Federations
Nandini Sahakar Scheme
Focus:
A women-centric framework for:
- Financial assistance
- Project formulation
- Capacity development
- Entrepreneurship and business planning
Scope:
- Applicable to all sectors except urban housing
- Supports enterprise development and provides interest subvention on loans
Alignment:
- Aligned with the Atmanirbhar Bharat mission by fostering women’s entrepreneurship through cooperatives
Banking/Finance
1. Banking Laws (Amendment) Act, 2025
Context:
The Ministry of Finance has notified the Banking Laws (Amendment) Act, 2025, bringing into force comprehensive changes across five key banking legislations to modernize governance, improve transparency, and enhance depositor safety.
What Is the Act?
A reform legislation amending multiple banking laws, including those governing:
- Public Sector Banks (PSBs)
- Cooperative Banks
- Banking Regulation Act
- Banking Companies (Acquisition and Transfer of Undertakings) Acts
- Depositor protection mechanisms
Objectives of the Act
- Strengthen governance in public and cooperative banks
- Improve audit standards and transparency
- Protect interests of depositors and investors
- Modernize outdated thresholds and processes in bank regulation
Key Features of the Amendment Act
Redefinition of ‘Substantial Interest’
- The threshold for “substantial interest” in banks revised from ₹5 lakh to ₹2 crore.
- Adjusts for inflation and sectoral expansion since 1968.
Cooperative Bank Governance Reform:
- Director tenure extended to 10 years (from 8 years), except for chairperson and full-time directors.
- Aligned with the 97th Constitutional Amendment, ensuring more democratic functioning.
Unclaimed Assets to IEPF:
- Public Sector Banks can now transfer unclaimed shares, interests, bond redemptions to the Investor Education and Protection Fund (IEPF).
- Harmonizes norms with those under the Companies Act.
Audit Transparency and Autonomy:
- PSBs can determine statutory auditor remuneration, enabling hiring of high-quality audit firms.
- Aims to enhance audit independence and professional standards.
Rationalized Statutory Reporting:
- RBI reporting frequency revised from weekly (every Friday) to fortnightly/monthly/quarterly.
- Reduces compliance burden and improves data efficiency.
Significance for the Indian Banking Sector
- Regulatory Modernization:
- Brings long-overdue reforms to match evolving banking realities and economic scale.
- Cooperative Sector Strengthening:
- Ensures better oversight and democratic governance in urban and rural cooperative banks.
- Depositor Confidence:
- Protects unclaimed funds and improves institutional accountability—especially in PSBs.
- Audit Reform:
- Boosts transparency and enables better financial oversight in public banking.
2. Indian Overseas Bank Reverts to Old Internet Banking Interface
Context:
Indian Overseas Bank (IOB), a public sector bank, has announced a temporary rollback to its old internet banking interface after technical failures disrupted customer access on its new platform.
Key Highlights:
Nature of the Problem
- IOB migrated to a new internet banking system on Saturday (July 27, 2025).
- Customers reported frequent login failures, with the interface going down intermittently.
- Issues persisted for several days, impacting digital banking services such as fund transfers, account access, and transactions.
Bank’s Response
- The bank has officially reverted to the older internet banking interface until the root cause of the issue is identified and fixed.
- A senior bank official stated that customer service was prioritized to prevent prolonged disruption.
Significance
- Highlights challenges in digital transformation faced by public sector banks.
- May affect customer confidence and reputation of both IOB and Edgeverve/Infosys in delivering stable banking tech solutions.
- Reinforces the need for robust vendor accountability and disaster recovery mechanisms in banking IT systems.
3. SEBI Tightens Surveillance Framework for Small-Cap Stocks
Context:
SEBI has introduced a revamped Enhanced Surveillance Mechanism (ESM) framework for small- and micro-cap companies, effective July 29, 2025. The move aims to curb speculative trading and protect retail investors amid overheated small-cap valuations.
Key Highlights:
- Revised ESM Shortlisting Criteria:
- Stage 1 Entry: Now includes positive price trends over the past 3 months, along with high-low price variation.
- Stage 2 Entry: Requires that shortlisted stocks also have either a negative PE ratio or a PE more than twice the Nifty 500 index.
- This ensures that only fundamentally weak or overvalued companies face stricter restrictions.
- Stage-wise Restrictions:
- Stage 1: 100% margin requirement, trade-for-trade settlement, 5% price band from T+2.
- Stage 2: More stringent measures apply only to companies with volatile prices and suspect valuations.
- Existing 2% price band stocks will retain the same cap.
- Market Capitalization Filter:
- Stocks with market cap below ₹1,000 crore, often lacking liquidity and disclosures, will face increased scrutiny.
- Impact on Market:
- Expected short-term dip in liquidity and momentum rallies.
- Aimed at long-term transparency, credibility, and retail investor protection.
- Will benefit 28 companies currently under ESM.
4. MSME Capacity Utilisation Improved in Q1 FY26: SIDBI Survey
Context:
The Small Industries Development Bank of India (SIDBI) released the third edition of its “MSME Outlook Survey”, revealing a positive trend in capacity utilisation among Micro, Small, and Medium Enterprises (MSMEs) during the first quarter of FY2025–26.
Key Highlights:
Business Sentiment and Confidence Index
- Composite MSME Business Confidence Index (M-BCI): Rose to 63.75 in Q1 FY26 from 60.82 in the previous quarter.
- Index >50 indicates positive sentiment.
- MSME Business Expectations Index (M-BEI):
- 62.19 for July–September 2025
- 67.88 for Q1 FY27
- Indicates continued optimism despite global trade challenges.
Sectoral Trends
- Manufacturing and Trading MSMEs led confidence gains.
- Services sector remained stable, with a slight dip in optimism.
Capacity Utilisation
- Around 21% of manufacturing and 20% of services MSMEs reported above-normal capacity utilisation.
- Up from 12–14% in the previous quarter, showing a sharp uptick in operational activity.
Access to Finance
- 88% of respondents reported improved access to finance, compared to 79% previously.
- Indicates improved credit availability and financial conditions.
Sales and Profitability
- Over 50% of MSMEs experienced a rise in sales and profits.
- Profit margins improved despite persistent cost pressures.
Borrowing Costs and Monetary Policy Transmission
- Fewer MSMEs reported rising borrowing costs.
- Suggests early signs of transmission from the 100 bps repo rate cut by RBI since February 2025.
Export Concerns
- 40% of exporting MSMEs reported adverse impacts from tariff-related uncertainties.
- Highlights global trade tensions as a significant headwind.
About the Survey
- Conducted by: Small Industries Development Bank of India (SIDBI)
- Edition: Third
- Sample Size: 1,200 MSMEs
- Scope: Manufacturing, Services, and Trading sectors
- Purpose: Track business sentiment and operational trends in the MSME segment.
Agriculture
1. Tenant Farmers to Now Avail PMFBY and MSP Benefits
Context:
On July 30, 2025, the Union Agriculture Minister Shivraj Singh Chouhan announced in the Lok Sabha that tenant farmers can now avail benefits under the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Minimum Support Price (MSP) procurement if authorised by the landowner and permitted by the state government.
Key Highlights:
- Inclusion of Tenant Farmers:
- Tenant farmers can now receive PMFBY benefits if the landowner provides written authorisation.
- Similarly, crops grown by tenant farmers can be procured at MSP with state government approval.
- Background Statistics:
- According to NSO’s 2018–19 survey, 17.3% of 101.98 million operational holdings were leased-in.
- Leased-in land constituted 13% of the total area under cultivation.
- However, many tenancy arrangements remain oral, potentially underestimating the actual figures.
- Expanded Access to FPOs:
- Tenant farmers and sharecroppers can now join Farmer Producer Organisations (FPOs).
- Recent Impact:
- Over 6.5 lakh tenant farmers have benefited under PMFBY.
- Around 42 lakh sharecroppers have received benefits under MSP procurement.
- Government’s Claims on Farmer Welfare:
- Minister claimed that reforms have doubled farmer incomes for many.
- ₹1.83 trillion worth of crop insurance claims settled under PMFBY.
- Subsidised fertilisers and record MSP procurements were also highlighted.
- Criticism of Past Governments:
- The UPA government was criticised for rejecting the Swaminathan Commission’s MSP formula recommendation (C2 + 50%).
Price Stabilisation Fund Concerns
- A Parliamentary Standing Committee flagged low budgetary allocation to the Price Stabilisation Fund (PSF).
- Recommended a thorough, data-driven assessment considering population, volatility, and performance of current stabilisation mechanisms.
2. SusMafia Launches ‘Climate-Tech Opportunity Map’ to Accelerate Climate Innovation in India
Context:
In a bold move to catalyze India’s climate-tech startup ecosystem, Sustainability Mafia (SusMafia) — a nonprofit collective of over 100 climate-tech leaders — has unveiled the ‘Climate-Tech Opportunity Map’, identifying startup-ready challenges aimed at significantly reducing India’s carbon footprint.
Key Highlights of the Climate-Tech Opportunity Map
Objective and Scope
- The map features 25 high-impact problem statements ready for entrepreneurial innovation.
- These opportunities target urgent climate and social challenges across sectors like energy, industry, agriculture, and water.
- Designed to guide early-stage founders and attract funding toward underserved yet crucial sectors.
Methodology for Selection
- Challenges were shortlisted through:
- Carbon emissions mapping
- Expert validation
- On-ground insights
- Focus areas included:
- High climate/social relevance
- Fast-growing or underserved markets
- Clear white spaces lacking scalable solutions
Backed by SusVentures:
- The initiative is part of SusVentures, a SusMafia program supporting early-stage climate entrepreneurs.
- Co-founders: Arjun P Gupta (Smart Joules), Aditya Bhat (AirProbe)
- Mission: Help founders move from idea to impact via mentorship, access to capital, pilot support, and a trusted climate network.
3. Drone-Based Seed Sowing in Waterlogged Paddy Fields
Context:
In a significant agricultural innovation, Kerala Agricultural University (KAU) has successfully demonstrated drone-assisted seed sowing in the waterlogged Pokkali paddy fields of Kumbalangi, with support from the World Bank. This breakthrough addresses long-standing challenges of mud and waterlogging in Kerala’s coastal paddy cultivation zones.
Key Highlights of the Drone Sowing Initiative:
Innovation in Action:
- A drone carrying up to 10 kg of germinated seeds was used to sow in saturated Pokkali fields.
- Trial was conducted jointly by KAU, Kerala State Agriculture Department, and Fuselage Innovation, a startup incubated under KAU’s Agri-Business Incubation Programme.
Operational Efficiency:
- One acre sown in 20–25 minutes, compared to labor-intensive traditional methods.
- Uniform seed distribution improves crop establishment and yield potential.
- Seed savings of up to 10 kg per acre through precision sowing.
Use of Germinated Seeds:
- Germinated (sprouted) seeds were found optimal for aerial sowing, improving anchorage in marshy terrain and boosting early growth.
Significance
Relief for Farmers:
- Reduces manual labour burden, especially in hard-to-reach, waterlogged fields such as those in Pokkali and Kuttanad.
Technological Leap for Sustainable Rice Farming:
- Encourages precision agriculture and use of emerging technologies to support resilient farming in challenging agro-climatic conditions.
Private Sector Innovation:
- Fuselage Innovation, led by founder Devan Chandrasekharan, highlights how agritech startups can deliver contextual solutions for traditional farming problems.
4. ICRISAT Launches AI-Powered Climate Advisory Services for Smallholder Farmers
Context:
In a landmark step to boost climate-resilient agriculture, the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) has launched an AI-driven initiative to deliver personalised and real-time agrometeorological advisories to smallholder farmers. The programme is backed by the Government of India’s Monsoon Mission III and involves collaboration with ICAR, CRIDA, ILRI, IITM, and the IMD.
Key Features of the Initiative
AI-Driven Climate Advisory System:
- The project, titled “AI-powered Context-Specific Agromet Advisory Services for Climate-Resilient Agriculture at Scale,” aims to help farmers make informed decisions on:
- Sowing
- Irrigation
- Pest and disease management
- Uses Artificial Intelligence (AI) and Machine Learning (ML) to generate hyper-local and actionable climate insights.
Pilot Implementation in Maharashtra:
- Initial deployment through ICAR’s Agro-Meteorological Field Units (AMFUs) in Maharashtra.
- Focus on reaching smallholder and marginal farmers.
- Pilot insights to guide national rollout and future South-South cooperation across developing countries.
Smart Delivery Platforms:
- AI-powered WhatsApp bot will ensure real-time, local-language dissemination.
- Designed for accessibility in remote rural areas with limited digital infrastructure.
Upgrade of iSAT Platform:
- The Intelligent Systems Advisory Tool (iSAT), originally developed during Monsoon Mission II, is being upgraded to:
- Integrate advanced AI algorithms
- Translate complex agronomic and climate data into personalised advisory
- Improve decision-making accuracy at the field level
Multi-Agency Partnership:
- Key stakeholders include:
- Indian Council of Agricultural Research (ICAR)
- Central Research Institute for Dryland Agriculture (CRIDA)
- Indian Institute of Tropical Meteorology (IITM)
- International Livestock Research Institute (ILRI)
- India Meteorological Department (IMD)
Global Significance:
- Technology has potential for replication across climate-vulnerable regions of the Global South.
- Offers a scalable digital solution to support adaptive farming practices under increasing climate variability.
Facts To Remember
1. India Launches NISAR Satellite
India successfully launched the NASA-ISRO Synthetic Aperture Radar (NISAR) satellite from Sriharikota, enhancing earth observation capabilities.
2. President’s Rule in Manipur Extended by Six Months
Lok Sabha passed a resolution to extend President’s Rule in Manipur, citing improved but fragile law and order in the state.
3. Russia Earthquake Triggers Tsunami in Japan, U.S.
A powerful earthquake off Russia’s Far East coast caused tsunami waves in Japan, Hawaii, and the U.S. West Coast, with minor injuries and no major damage.
4. Hardeep Wins Gold in World U-17 Wrestling
Teenager Hardeep from Haryana won gold in the 110kg Greco-Roman event at the U-17 World Wrestling Championships in Athens.
5. Indian Men Secure Bronze in World Junior Squash
India reached the semifinals of the World Junior Squash Championship in Cairo, ensuring at least a bronze medal.
6. 20th PM-Kisan Installment to Be Released on August 2
The next installment of PM-Kisan Samman Nidhi will be launched by PM Modi in Varanasi, aiming to maximize farmer coverage.
7. Rise in Multi-Asset Funds Amid High Equity Valuations
Investors are shifting to multi-asset funds for diversification, as experts warn of high stock market valuations.
8. Govt aims to open 25k Jan Aushadhi Kendras by March 2027
Minister of State for Chemicals and Fertilisers Anupriya Patel has stated that a total of 16 thousand 912 Jan Aushadhi Kendras have been established under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana scheme as of 30th June this year.
